A Simulation Game in Managing a Private Equity Fund

The goal of the project is to develop an educational simulation game, that is to be used in training college students as well as professionals in finance. The simulation immerses student teams in managing a private equity fund where they compete to acquire and manage high-quality companies in a crowded market. Teams set a fund strategy and pacing, pursue targeted opportunities, and manage portfolio companies with the objective of maximizing fund risk-adjusted returns and cash flows.

Details: Participants make buyout decisions by analyzing company financial statements, assessing trade-offs, conducting quality-of-earnings reviews, and underwriting risks. Each team develops a 3–5-year value-creation plan, optimizes the capital stack to shape cash flows, executes disciplined operating improvements, and plans exits—via strategic sale or Initial Public Offering (IPO)—using key performance indicators (KPIs) and scenario analysis to guide decisions. Macroeconomic scenarios (recession, growth, interest rates) and competitive industry dynamics influence risks and outcomes. The simulation follows the industry’s established sequence: fundraising, deal sourcing; due diligence and screening; financial modeling and pricing; deal structuring; value creation; and exit.

Development Requirements: Project involves developing the back-end simulation as well as a front-end user interface (probably a web interface) both for the students to play and the instructor to introduce constraints into the game. Students working in the project would receive training from Dr. George Tsetsekos regarding the financial aspects of the simulation game. Some of the engines required for data may be based on AI models

Target Audience of the product: A successful end product of this project would become a highly sought learning tool for higher education institutions to train students and for finance companies to train their employees.