Background Note | HBS Case Collection | October 2003 (Revised February 2004)

Introduction to the Large-Scale Investment (LSI) Course at Harvard Business School

by Benjamin C. Esty

Abstract

Introduces students to the Large-Scale Investment (LSI) course taught at Harvard Business School. LSI is a case-based course about project finance that is designed for second-year MBA students. The course is about project finance, which involves creation of a legally independent project company financed with equity from one or more sponsoring firms and nonrecourse debt for the purpose of investing in a capital asset. In 2001, project-financed investment reached $217 billion worldwide. The LSI course describes what project finance is, why it creates value, and how to structure deals. In doing so, the course helps to sharpen and deepen students' understanding of corporate finance. This note describes the course's key themes, structure, and content. Additionally, there is a brief synopsis of each case study. The cases are available individually from Harvard Business School Publishing.

Keywords: Value Creation; Project Finance; Investment; Projects;

Citation:

Esty, Benjamin C. "Introduction to the Large-Scale Investment (LSI) Course at Harvard Business School." Harvard Business School Background Note 204-093, October 2003. (Revised February 2004.)