My FCP Experience: Diving into Private Equity!
Hi everyone!
As we wrap up the spring semester, I’m excited to share with you one of the coolest experiences you’ll have during your time at Fisher College of Business - the Finance Consulting Practicum (FCP).
What exactly is the FCP?
In simple terms, it’s the ultimate crossover between what you learn in class and the real deal of corporate America. Unlike my previous experience with the MBA Case Competition, where you tackle a challenge and present your solution to the management board, the FCP offers a continuous interaction between consultants (students of the SMF program) and the client. It operates much like a summer internship, over a couple of months, you dive into a project, and then boom, you’re presenting your findings to the board members of the company.
This year, in 2024, our projects delved into various realms of finance, including Financial Planning with Jaguar Land Rover, Investment Banking with Vium Capital, Investment Management with Vela Investments, and my personal favorite, Private Equity with Woodside Health (WSH)!
The firm
Let's zoom in on WSH. These folks are all about Real Estate Private Equity, based out of Cleveland, Ohio. They raise capital, snap up properties, give them a facelift, and then cash out for a profit. Their focus primarily lies in medical offices, hence the "health" in their name, predominantly in the states of Texas & Arizona, with the city of Houston as their star player. They also have investments in Florida & Nevada, with Las Vegas being a frequent destination for their visits...
The Team
I had the honor of leading an incredible group of five SMF students - Dhairya Patel, Cybil Kang, Helen Qian, and Roger Chen. Over the past two months, we immersed ourselves in two critical concepts: Cap Rate and IRR.
Our project unfolded in three phases:
- Part I: Identify Tenant and Market Risk - Analyze the current rent roll for the portfolio and propose a course of action for expiring tenants based on the team’s recommended year of sale.
- Part II: Pro Forma and Cash Flow Analysis
- Part III: Valuation, Return Profile, and Exit Recommendation
Presentation
The big day had finally arrived, and after pouring our hearts into the project for months, our team packed our bags and headed to Cleveland to present our model at Woodside's offices in person. This decision wasn't just about showcasing our work; it was a chance to meet our mentor, Connor LaBarge, an SMF alumni. Connor welcomed us with open arms and shared invaluable insights that really helped shape our project. And let's not forget about Manus Ebbecke, another SMF alumni who was instrumental in developing our model. Their support and expertise made all the difference, and we're incredibly grateful for their guidance along the way!
During our visit, we had the honor of presenting to Ted Barr, Principal of the company, and a panel including Andrew Morgan (VP of Investment Management), Gary Butler (VP - Asset Management), Jarry Yu (VP of Due Diligence and Closing), and Maxwell Thoman (Manager). Their insightful questions and feedback provided us with a deeper understanding of this niche business.
Finally, I want to express my gratitude to Prof. Pinteris, the SMF program director, for providing us with such incredible opportunities and assembling such a high-caliber team for this project!
Thanks, Fisher & Go Bucks!
Stefano Mejia
(https://www.linkedin.com/in/stefano-mejia/)
