Spring 2012 - 62030 - PA388L - Advanced Topics in Management
Finance for Social Ventures: Financial Mgmt & Capital Markets
|Instructor(s):|| Kothare, Meeta
|Day & Time:||W 9:00 - 12:00 pm|
|Waitlist Information:||For LBJ Students: UT Waitlist Information|
Students desiring additional exposure to public management issues may select from seminars on such topics as managing diversity, principles and practices of effective leadership, and social entrepreneurship.
This course is designed as an introduction to finance for students who aspire to be social entrepreneurs. Students who expect to support social ventures during their careers as donors, financial investors, or board members will also find this course useful. By the end of the semester, students will
a) understand how to use financial tools for decision making in social ventures, and
b) become familiar with existing and evolving capital opportunities for funding nonprofit and for-profit social ventures.
To build solvent and sustainable organizations, social entrepreneurs need to understand fundamentals concepts of financial management. In the first section of the course, students will learn topics such as cashflow valuation, valuation of financial securities, valuation of real assets, and risk/return tradeoffs in capital markets.
The capital market for social ventures has witnessed a rapid growth of new funding alternatives, often grouped under the term “Impact Investments,” that aim to improve the capacity of social ventures to scale more and with greater speed than traditional philanthropy would allow. Such investments promise financial returns to investors while achieving social and environmental impact. This section of the course will expose students to investment vehicles such as social venture capital, microfinance, microcredit, PRIs, MRIs, social mutual funds, social impact bonds, and the financing institutions/intermediaries that provide them.
The final section of the course will introduce students to business valuation methods. Students will learn how to value a social enterprise by using a combination of conventional financial valuation techniques and alternative approaches to social impact measurement. Students will complete a team project on valuation which they will present in class.
Classes will involve a combination of lectures, discussions, guest speakers, mini cases, team projects and presentations. While the course covers topics in finance, its content and format are also designed to develop influential and ethical leaders who can think critically, communicate their vision effectively, and lead with integrity in a rapidly evolving social sector.
1. Textbook: Corporate Finance by Ross, Westerfield, and Jaffe, 8th edition, McGraw-Hill Irwin
2. Lecture notes
3. Packet of Readings
Students’ grades will be based on the following:
- Attendance and Class participation: 20%
- Quizzes and Assignments: 30%
- Midterm: 20%
- Team project and presentation: 30%
Dr. Kothare is founder and president of Neeva Solutions, LLC, a strategic and management consulting firm helping non-profit, for-profit, government and philanthropic organizations build strong foundations for sustainability and impact in the social sector.