Due Diligence
Learn to lead or support private equity transactions through the due diligence process.
Module structure & duration
About 15 hours to complete
Online self-paced
Practical Skills Modules can be completed online at your own pace.
Prerequisites
We recommend that CFA® Program candidates are familiar with financial modeling concepts, debt, capital markets, and discounted cash flow analysis.
Available to registered Level III candidates.
What is the Due Diligence module?
In the Private Markets and Due Diligence module, you will learn the essential skills required to evaluate and execute private equity transactions. You will explore how to identify promising investment opportunities, assess financial health, conduct legal and operational due diligence, value target companies, and develop effective exit strategies.
Due diligence in private markets is a cornerstone of successful investing. For professionals involved in private equity, venture capital, or direct investments, mastering the due diligence process is critical to identifying risks, uncovering value, and making informed investment decisions. This course equips you with the analytical frameworks and tools needed to operate confidently in the dynamic and complex world of private markets.
The module consists of three units and emphasizes on conveying a turnkey due diligence skillset in the context of a GP analyst evaluating target companies. The learning experience includes hands-on Excel exercises, realistic case studies, and interactive knowledge checks. During the module, learners will be taken through an engaging and practical journey with direct relevance to real-world decision-making. By the end of the course, learners will be able to assess private market opportunities with greater confidence, apply a systematic due diligence approach, and support stronger portfolio outcomes.
Key learning objectives for Private Markets and Due Diligence
- Conduct systematic financial due diligence to assess and mitigate financial risks, ensuring informed investment decisions.
- Understand and apply legal and tax due diligence processes to navigate regulatory requirements and protect investment interests.
- Analyze operational aspects of target companies to ensure post-investment efficiency and value creation.
- Develop valuation and deal structuring skills to optimize capital structures and achieve strategic investment goals.
- Implement effective exit strategies to manage risks and maximize investment returns.
Frequently Asked Questions
The due diligence process is a comprehensive investigation of a potential investment. In private markets, this involves evaluating a target company's financial health, operational efficiency, and legal standing. This module teaches due diligence in private markets through a structured three-unit curriculum, from a GP’s perspective. It covers everything from evaluating the target company’s financial condition and earnings quality to final exit strategies.
Participants will develop core due diligence skills, including assessing “above-the-line” financial health, earnings quality, and cash generation capacity; performing operational, legal, and regulatory due diligence; and formulating debt structuring, deal valuation, and pricing. The module focuses on practical, deal-ready skills that can be applied immediately in private equity roles.
This module is specifically designed for, so only available to, CFA Program Level III candidates.
Currently, the Practical Skills Modules are integrated into the CFA Program curriculum. If you are already a CFA Program candidate, you can access these resources through the candidate portal to enhance your financial due diligence expertise.
Financial due diligence is the process of analyzing a company’s financial performance, risks, and projections to support investment decisions.
Due diligence helps investors identify risks, validate assumptions, and make informed investment decisions.
Key skills include financial analysis, valuation, risk assessment, and understanding legal and operational factors.
Professionals in private equity, investment banking, and corporate finance benefit most from due diligence training.
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