Real Estate Private Equity Modelling in Excel

Learn how to structure and model Real Estate Private Equity Funds. The course models the link between individual project appraisals taught on our Real Estate Financial Modelling School and the entity that purchases them. The individual property and tenant variables are combined from their NOI and incorporated into a three-statement operating model. You will also learn how to design an incentive scheme, model the distribution of dividends and value the fund. A variety of scenarios are then modelled such as Leveraged Buy-Outs (LBOs) and Venture Capital Contributions. Finally, you will test the key drivers of the underlying assets on overall returns.

On this course you will:

  • Build a Real Estate Private Equity Fund model
  • Understand Private Equity market structure and strategies
  • Understand the basics of Fund Valuation and related metrics
  • Review accounting principles as applied to Real Estate Funds
  • Model dividend policy and distributions under various scenarios
  • Analyse risk using metrics, tables and charts
  • Use risk analysis techniques to further define fund structures

Who is this course for?

  • Private Equity Fund Managers
  • Investment consultants and Financial advisers working with Fund Managers
  • Finance professionals supporting institutional Investors
  • Private Bankers and Family office representatives
  • Real Estate professionals looking to expand their knowledge in corporate finance
  • Recent Graduates interested in learning how to model private equity deals


Course Outline

Understanding a Private Equity Fund Model

  • Layout and key elements of a PE Model
  • Private equity market and strategies
  • Understanding the deal structure and interested parties
  • Understanding the capital structure
  • Review of the key debt instruments
  • Review of the key equity instruments (special case of Management Buyout)

Fund valuation methods

  • The multiples approach to valuation
  • Discounted Cash Flow (DCF), modelling and core concepts
  • Private Equity performance metrics
  • Pre-money vs Post-money valuation
  • Special Cases

Review of accounting principles

  • Balance Sheet: Real Estate Valuations and Debt
  • Profit & Loss: Capital Allowances
  • Cash Flow statement: Escrow Accounts and Distributions

Modelling Fund Dynamics, Drivers and Forecasting

  • Forecast of revenue and cost drivers
  • Indirect costs and historical ratios in the working capital schedule
  • Amortization/Depreciation schedule and capital expenditures
  • Debt schedule and the cash available to service the debt
  • Modelling dividend distributions
  • Shareholder’s equity schedule and completing the income statement
  • Modelling and Analysing Risk

Performance Analysis

  • Benchmarking returns within Real Estate and across industries
  • Analyse leverage and coverage ratios
  • Calculating Equity Returns Using EBITDA or Net Income

Included With Course

  • Post-Course Support
    • Two months of Questions and Answers.
    • One year of support is available for an additional fee – Request for more information.*
  • CPD Accredited Certificate & LinkedIn Proficiency Badge
  • Online Learning Platform access
    • Course Manual – Digital
    • Course Files
    • Further Learning Resources (Reading, Files, Videos)
  • Hard-copy Course Manual* If purchased separately
    * Included with In-Person Booking.

Course Details

Pricing – Public Course

In-Person: £1,950 + VAT
Virtual: £1,500 +VAT*
* Hard copy course manual can be bought for an additional fee.

Upcoming Dates – Public Course Dates

Number of days: Two days
Course type: Financial Modelling
Course level:
Pre-requisite: Real Estate Analyst

Are you currently studying?

How to Book

Course Bookings:

Jacob Noble
[email protected]

Samuel Musgrave
[email protected]

Course Delivery & Administration:

Emma Wilson
[email protected]

Want to know more?

Webinar Videos

What is Private Equity – Introduction to Private Equity Modelling

Trends in Real Estate Private Equity – Introduction to Private Equity Modelling