Hegi Family Gift Finances One-of-a-Kind Private Equity Course

With the generous support of the Hegi family of Dallas, The University of Texas at Austin has created something rare in business education: an MBA private equity class that provides a real-world experience in operations. Clinical Professor of Finance Ken Wiles, who teaches the course, said he could find no other business school offering a class like this.

The course is supported by a $2 million gift — the Hegi Family Excellence Fund for Private Equity — to the Hicks, Muse, Tate & Furst Center for Private Equity Finance at the McCombs School of Business.

“Supporting transformative educational opportunities is a pillar of our family’s philanthropic giving,” said HMTF Center Advisory Board Member Brian Hegi, MBA ’04, co-founder and managing partner of Crossplane Capital, a private equity firm in Dallas. “We jumped at the opportunity to participate in starting a one-of-a-kind private equity course that will differentiate McCombs from other graduate business schools.

“It was also an opportunity for my brother, Peter, and me to recognize our father, Fred, who is one of the pioneers of operational intensive private equity investing.” In 1987, Frederick Hegi, Ph.D. ’70, founded the investment management company Wingate Partners to purchase controlling equity investments in manufacturing, distribution, and service businesses.

The course, “Private Equity II: Operations and Value Creation,” is a follow-up to Wiles’ prerequisite class, which covers the basics of investment partnerships that buy and manage companies before selling them.

The operations aspect has always been important in private equity education, Wiles said, but now because of changes in interest rates, it’s critical that students understand it. “To have this class positions us really nicely and, ultimately, makes our students uniquely prepared for high-level positions in private equity.” The class of 40 is full and has a waitlist of at least 10 people.

“Wiles‘ first course on private equity is already one of the most popular elective MBA classes,” said Clemens Sialm, chair of the Department of Finance. “The new course enabled by the Hegi family will focus on the implementation of strategies that strengthen core operations to drive value and growth in portfolio companies.”

Wiles, executive director of the HMTF Private Equity Center, said he has worked closely with Brian Hegi to build the course on Crossplane Capital’s training program. About half the class meetings will feature outside speakers, including private equity investors, investment bankers, entrepreneurs, professional services providers, and academics. The speakers represent companies such as Crossplane Capital, JPMorgan Chase, Edison Partners, and Wilson Sonsini.

“My objective is to introduce some concepts and topics and then bring in speakers to say, ‘Here’s what we’re doing,’” Wiles said. “Students will learn to quickly identify and implement ways to increase value for a company — to expand new products, to extend to new geographic regions, and to hire great people.”

Fred Hegi serves on the executive committee of the Chancellor’s Council of The University of Texas System and is a trustee of the UT Southwestern Medical Foundation and the UT Southwestern Board of Visitors. He is also a former chairman of McCombs’ advisory council and its foundation.

“We are grateful to the Hegi family for their continuing support of McCombs and the Finance Department, which will help achieve our goal to become the highest-impact public business school in the nation,” Sialm said.

McCombs Dean Lillian Mills concurred. “We are immensely grateful to the Hegi family for their continued generosity and belief in our mission,” she said. “This unique course illustrates our firm commitment to nurture the intersection of industry and academia — a commitment that makes our graduates world-changers.”

“We hope that the Private Equity II class will be a practical, real-world experience that will make the students better strategic and operational leaders and strengthen investment acumen, regardless of their ultimate career paths,” Brian Hegi said.