By reviewing successful and failed modifications of the private equity model to serve the goals of corporate, public, and non-profit organizations, we will gain a deeper understanding of how traditional funds work. During discussions, we will return repeatedly to the frameworks developed in the earlier modules of the course. Finally, corporate venture capital programs represent an interesting avenue for entry into the private equity field that relatively few students consider. The intense competition for jobs in traditional private equity organizations allows many funds to demand that new hires already have a demonstrated investment track record. Yet it is difficult to develop such a track record without a job in the industry.
Corporations are often much more willing to hire candidates directly out of school.
If one can successfully make one s way into a corporate venture group, it can provide valuable experience and serve as a stepping-stone to a position at an independent private equity firm. The first corporate venture funds were engendered by the successes of the early venture capital funds, which backed such firms as Digital Equipment, Memorex, Raychem, and Scientific Data Systems. Excited by this success, large companies began establishing venture divisions. These generally took two forms, external and internal. At one end of the spectrum, large corporations financed new firms alongside other venture capitalists.