SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Demonstrate an understanding of the core concepts underlying private equity transactions 
SAQA US ID UNIT STANDARD TITLE
13401  Demonstrate an understanding of the core concepts underlying private equity transactions 
ORIGINATOR
SGB Banking and Micro Finance 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
BANKSETA - Banking Sector Education and Training Authority 
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This unit standard is for people who have to demonstrate an understanding of the core concepts of Private Equity.

The qualifying learner is capable of:
  • Demonstrating an understanding of the need for Private Equity
  • Explaining the process of conducting a Private Equity transaction
  • Explaining fundamental principles of Private Equity
  • Demonstrating an understanding of ongoing partner relationships and existing investments 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    The learner must be able to work within an investment environment and to understand the commercial objectives of the operation in which they work. Learners need to be competent in mathematics at NQF level four. They should have a business or accounting or financial background. 

    UNIT STANDARD RANGE 
    The typical scope of Private Equity funding includes organic growth, acquisitive growth, changes in shareholding, wealth creation, divesting of conglomerates. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Demonstrate an understanding of the need for private equity 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The need for Private Equity funding is explained. 
    ASSESSMENT CRITERION RANGE 
    Organic growth, acquisitive growth, changes in shareholding, wealth creation, divesting of conglomerates.
     

    ASSESSMENT CRITERION 2 
    2. The sources of funding, and the advantages and disadvantages of different funding instruments are explained. 
    ASSESSMENT CRITERION RANGE 
    Debt, Equity, Listed and Unlisted markets.
     

    ASSESSMENT CRITERION 3 
    3. Private equity as an asset class is explained. 

    SPECIFIC OUTCOME 2 
    Explain the process of conducting a private equity transaction 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Suitable businesses for a Private Equity transaction are identified. 
    ASSESSMENT CRITERION RANGE 
    Company SWOT analysis, risk assessment, business profile, management structures, cash flow generation, macro economic environment, company specific environment, evaluation of barriers to entry.
     

    ASSESSMENT CRITERION 2 
    2. Suitable businesses from an industry point of view are identified. 
    ASSESSMENT CRITERION RANGE 
    Regulatory environment, Competitors.
     

    ASSESSMENT CRITERION 3 
    3. A full due diligence is conducted. 

    ASSESSMENT CRITERION 4 
    4. The transaction is negotiated and implemented. 
    ASSESSMENT CRITERION RANGE 
    Tax structures, price negotiation, terms of the deal, legal process, corporate law techniques and application.
     

    SPECIFIC OUTCOME 3 
    Explain fundamental principles of private equity 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. An understanding of the concept of leverage / gearing is demonstrated. 

    ASSESSMENT CRITERION 2 
    2. An understanding of the concept of discounted cash flows is explained. 
    ASSESSMENT CRITERION RANGE 
    Net present value, Time value of money, Internal rate of return.
     

    ASSESSMENT CRITERION 3 
    3. An understanding of the difference between leverage buyouts and venture capital is explained. 

    SPECIFIC OUTCOME 4 
    Demonstrate an understanding of ongoing and existing partner relationships 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The company's past investment is explained. 
    ASSESSMENT CRITERION RANGE 
    Board representation, developing the partnership, value creation.
     

    ASSESSMENT CRITERION 2 
    2. Potential exit opportunities (Range: listing, selling to a trade player, re-gearing) are identified. 

    ASSESSMENT CRITERION 3 
    3. Success factors are identified. 
    ASSESSMENT CRITERION RANGE 
    Examining returns on investment, Internal rate of return.
     


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    Accreditation for this Unit Standards shall be from the relevant education and Training Quality Assurer through formative and summative assessment by a registered Assessor. Assessment should be contextual and be conducted in the workplace as far as possible.

    The relevant NSB and SGB should be notified of any feedback related to this qualification.
  • Assessors must be registered as an Assessor with the relevant ETQA
  • Moderators must be registered as assessors with the relevant ETQA
  • Training providers must be accredited by the relevant ETQA
  • Moderation should include both internal and external moderation where applicable
  • The relevant ETQA will co-ordinate all moderation activities in accordance with their policies and procedures. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    Learners can:

    1. Apply knowledge of principles of Private Equity.
    2. Create positive interactions through communication.
    3. Provide quality service to partner relationships. 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner is able to identify and solve problems relating to the completeness, correctness and accuracy of the information received. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively using basic mathematical and/or language skills in the modes of oral and/or written persuasion when communicating with relevant parties regarding the application. 

    UNIT STANDARD CCFO SCIENCE 
    The learner is able to use science and technology effectively and critically in applying the use of the company system to process applications. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    Terminology:

    The learner should be able to define and contextualise the following terms:

    Acquisitive growth, business profile, cash flow generation, divesting of conglomerates, discounted cash flows, due diligence, gearing, internal rate of return, leverage, organic growth, re-gearing, risk assessment, value creation, venture capital

    Values:

    The use of tasks and materials in the learning event plan should not discriminate against learners on any grounds prescribed in the Bill of Rights and should promote the orientations outlined in the critical cross-field outcomes. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  50481   National Certificate: Financial Markets and Instruments  Level 6  Level TBA: Pre-2009 was L6  Reregistered  2023-06-30  BANKSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Azania Currency and Equity Markets 
    2. Chartall Business College 
    3. DC Dali Debt Counsellors 
    4. Duke 
    5. Felix Risk Training Consultants 
    6. Full Value Financial Services (Pty) Ltd 
    7. Injabulo Home Grown Learning and Development Solutions 
    8. Lotus Academy Pty Ltd 
    9. Maharishi Invincibility Institute NPC 
    10. Octopus Training Solutions 
    11. The Academy of Financial Markets 
    12. The Facilitation Workshop 
    13. The Institute of Literacy Advancement 
    14. UCS Education and Training Services (Pty) Ltd 
    15. Welltec Academy (Pty) LTD 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.