David Erickson

Senior Fellow and Lecturer of Finance

Contact Information

Primary Email:
davider@wharton.upenn.edu
Office Phone:
215-898-6087
Mobile Phone:
203-461-2367

office Address:
2338 Steinberg-Dietrich Hall
3620 Locust Walk
Philadelphia, PA 19104

Overview

David Erickson is currently a Senior Fellow and Lecturer in the Finance Department and Co-Director of the Stevens Center for Innovation in Finance. David is also a Lecturer in Law at Penn Law/University of Pennsylvania Law School.

In addition to his responsibilities at Wharton, David acts as a consultant to both private and public companies on capital markets, corporate governance, and exploring strategic alternatives. He was also an operating partner at Bessemer Venture Partners, one of the leading global venture capital firms and an advisory board member of Accompany, a relationship intelligence technology company (acquired by Cisco Systems, May 2018).

After over 25 years on Wall Street, David retired in 2013. Most recently, he was co-head of global equity capital markets at Barclays. He was responsible for all of their corporate equity capital raising globally including all IPOs, follow-ons, private placements and convertibles, as well as equity derivatives. As part of his responsibilities, David was a member of the firm’s investment banking operating committee and equity capital commitment committee. Prior to Barclays’ acquisition of Lehman Brothers’ US broker-dealer in 2008, David was head of global equity capital markets at Lehman. In 2004, he was named Lehman’s head of US equity capital markets. Lehman was awarded International Financing Review’s 2005 US Equity House of the Year and US Equity-Linked House of the Year, for its equity capital markets success. Prior to 2004, David also had equity capital markets sector responsibilities for Technology, Internet, Media, Consumer & Retail, and Industrials. Early in his investment banking career, David also ran Bankers Trust International’s London-based investment management business. Before becoming an investment banker, David worked as a vice president at a Boston-based strategic consulting firm that focused on the investment banking industry.

Since retiring from Wall Street, David has been a guest lecturer on capital markets, corporate governance, and entrepreneurial finance at the business schools of Stanford and Kellogg and Northwestern Law School. Previously, David served on the board of trustees of My Money Workshop, a non-profit organization focused on improving financial literacy; the leadership council of AmeriCares, a global emergency response and health non-profit organization; and the board of trustees of CancerCare, a leading national non-profit organization that provides assistance to those impacted by cancer.

David has a B.B.A. from Iowa State University and an M.B.A. from Boston University.

Research

David Erickson Electrolux Prepares to Acquire GE Appliances: Continues to Build its Global Brand – Wharton – Case 99. Description
As the global appliance market consolidates, Electrolux, the large Swedish appliance manufacturer, makes a move to acquire General Electric’s appliances business. The case examines the trends and dynamics driving the sector and addresses the issues associated with executing and financing a cross-border acquisition.
David Erickson and David Musto Alcoa Deals with the Financial Crisis – Wharton Case 98. Description
Alcoa, Inc. (Alcoa), an S&P 500 Index constituent and Dow Jones Industrial Average (DJIA) component, has just announced its fourth quarter 2008 earnings. In the midst of the Global Financial Crisis, Alcoa reported a net loss of US$1.19 billion for the quarter. With aluminum prices off by 56 percent in the last five months and a sharp drop in demand from its end markets, Alcoa announced a major restructuring including a workforce reduction of 15,000 jobs. Joan Davidson, a managing director at Pinnacle Capital (a fictitious investment bank), is scheduled to meet with Alcoa management and needs to strategize to give the company her recommendations on what actions Alcoa should take. The case examines Alcoa's history, current situation, and the potential alternatives it can take.

To use this case, please contact coursematerials@wharton.upenn.edu.
David Erickson and David Musto Elliott Management Goes After Riverbed Technology – Wharton Case 97. Description

The case follows Elliott Management, one of the world’s largest activist investors, in its campaign in 2014 to buy out Riverbed Technology, a formerly high-flying technology firm. The campaign involves a sequence of moves by Elliott and countermoves by Riverbed. The narrative includes communications between the parties; Riverbed’s earnings announcements and other corporate actions; and the impact on Riverbed’s stock price.

To use this case, please contact coursematerials@wharton.upenn.edu.
David Erickson and David Musto The Alibaba IPO – Wharton Case 96. Description
Alibaba Group Holding Limited (Alibaba) is finishing up its IPO roadshow. James Miller, an associate at Dragon Fund (a fictitious financial institution), is asked to prepare a recommendation on Alibaba for its upcoming Investment Committee meeting. The case examines Alibaba's history; business model; opportunity in China (and globally); governance structure; valuation (versus potential comparable companies); and the forms of securities it is offering.

To use this case, please contact coursematerials@wharton.upenn.edu.
David Erickson and David Musto EMC: The Carve-out of VMware – Wharton Case 95. Description
This case focuses on the strategic decision EMC made to carve out its high-growth subsidiary, VMware. The case examines some of the factors companies use to determine whether or not to carve out a subsidiary and the potential implications. It also examines the valuation impact on both EMC and VMware at IPO.

To use this case, please contact coursematerials@wharton.upenn.edu.

Teaching

Co-teaching FNCE 2830/7830 – Strategic Equity Finance – with Professor David Musto (Spring 2024)

Co-teaching FNCE 7830 – Strategic Equity Finance – with Professor Musto (Fall 2023, SSF)

Co-teaching FNCE 7830 – Strategic Equity Finance – with Professor Musto (Fall 2023, WEMBA 48 East)

Co-teaching FNCE 2830/7830 – Strategic Equity Finance – with Professor David Musto (Spring 2023)

Co-teaching FNCE 7830 – Strategic Equity Finance – with Professor Musto (Fall 2022, WEMBA 46 West)

Co-teaching FNCE 7830 – Strategic Equity Finance – with Professor Musto (Fall 2022, WEMBA 47 East)

Co-teaching FNCE 7830 – Strategic Equity Finance – with Professor Musto (Summer 2022, WEMBA 46 East)

Co-teaching FNCE 283/783 – Strategic Equity Finance – with Professor David Musto (Spring 2022)

Co-teaching FNCE 783 – Strategic Equity Finance – with Professor David Musto (Spring 2022, WEMBA 46 West)

Co-teaching FNCE 283/783 – Strategic Equity Finance – with Professor David Musto (Spring 2021)

Co-teaching FNCE 783 – Strategic Equity Finance – with Professor David Musto (Spring 2021, WEMBA 45 East)

Co-taught FNCE 283/783 – Strategic Equity Finance – with Professor David Musto (Spring 2020)

Co-taught FNCE 783 – Strategic Equity Finance – with Professor David Musto (Spring 2020, WEMBA 44 West – SF)

Co-taught LAW 907 (Penn Law) – Strategic Equity – with Professor Jill Fisch (Spring 2020)

Co-taught FNCE 783 – Strategic Equity Finance – with Professor David Musto (Summer 2019, WEMBA 44 East)

Co-taught FNCE 783 – Strategic Equity Finance – with Professor David Musto (Spring 2019, WEMBA 43 West – SF)

Co-taught FNCE 283/783 – Strategic Equity Finance – with Professor David Musto (Spring 2019)

Co-taught FNCE 883 – Strategic Equity Finance – with Professor David Musto (Fall 2018, San Francisco)

Co-taught FNCE 895 – Strategically Capitalizing the Growth in China – with Professor David Musto (Fall 2018)

Co-taught FNCE 883 – Strategic Equity Finance – with Professor David Musto (Summer 2018, WEMBA 43 East)

Co-taught FNCE 883 – Strategic Equity Finance – with Professor David Musto (Spring 2018, WEMBA 42 West – SF)

Co-taught FNCE 383/883 – Strategic Equity Finance – with Professor David Musto (Spring 2018)

Co-taught FNCE 883 – Strategic Equity Finance – with Professor David Musto (Fall 2017, San Francisco)

Co-taught FNCE 883 – Strategic Equity Finance – with Professor David Musto (Summer 2017, WEMBA 42 East – Phil)

Co-taught FNCE 383/883 – Strategic Equity Finance – with Professor David Musto (Spring 2017)

Co-taught FNCE 883 – Strategic Equity Finance – with Professor David Musto (Fall 2016, San Francisco)

Co-taught FNCE 883 – Strategic Equity Finance – with Professor David Musto (Fall 2016, WEMBA 41 East – Phil)

Co-taught FNCE 883 – Strategic Equity Finance – with Professor David Musto (Summer 2016, WEMBA 41 West – SF)

Co-taught FNCE 383/883 – Strategic Equity Finance – with Professor David Musto (Spring 2016)

Co-taught LAW 907 (Penn Law) – Strategic Equity – with Professor Jill Fisch (Spring 2016)

Co-taught FNCE 883 – Strategic Equity Finance – with Professor David Musto (Summer 2015, WEMBA 40 East – Phil)

Co-taught FNCE 383/883 – Strategic Equity Finance – with Professor David Musto (Spring 2015)

Past Courses

FNCE2830 - Strategic Equity Finance
This course discusses actual situations where companies need to make strategic decisions on raising equity capital. We will address different phases of a company's life cycle. Through these cases, from the decision-makers perspective, we will explore the different paths that can be taken and consider issues This half-semester course combines lectures and cases, and will go through actual situation where companies need to make strategic decisions on raising equity capital. We will address different phases of a company's life cycle. Through these cases, from the decision-makers perspective, we will explore the different paths that can be taken and consider issues such as investor activism, governance and regulatory and valuation impact.
FNCE3990 - Independent Study
Integrates the work of the various courses and familiarizes the student with the tools and techniques of research.
FNCE7380 - Capital Markets
The objective of this course is to give you a broad understanding of the instruments traded in modern financial markets, the mechanisms that facilitate their trading and issuance, as well as, the motivations of issuers and investors across different asset classes. The course will balance functional and institutional perspectives by highlighting the problems capital markets participants are seeking to solve, as well as, the existing assets and markets which have arisen to accomplish these goals. We will consider design, issuance, and pricing of financial instruments, the arbitrage strategies which keep their prices in-line with one another, and the associated economic and financial stability issues. The course is taught in lecture format, and illustrates key concepts by drawing on a collection of case studies and visits from industry experts. FNCE 6130 is recommended but not required.
FNCE7830 - Strategic Equity Finance
This course discusses actual situations where companies need to make strategic decisions on raising equity capital. We will address different phases of a company's life cycle. Through these cases, from the decision-makers perspective, we will explore the different paths that can be taken and consider issues. This half-semester course combines lectures and cases, and will go through actual situation where companies need to make strategic decisions on raising equity capital. We will address different phases of a company's life cycle. Through these cases, from the decision-makers perspective, we will explore the different paths that can be taken and consider issues such as investor activism, governance and regulatory and valuation impact.
FNCE8990 - Independent Study
Independent Study Projects require extensive independent work and a considerable amount of writing. ISP in Finance are intended to give students the opportunity to study a particular topic in Finance in greater depth than is covered in the curriculum. The application for ISP's should outline a plan of study that requires at least as much work as a typical course in the Finance Department that meets twice a week. Applications for FNCE 8990 ISP's will not be accepted after the THIRD WEEK OF THE SEMESTER. ISP's must be supervised by a Standing Faculty member of the Finance Department.
LAW9070 - Law Seminar
Please consult the Course Finder.
LAW9700 - Law Seminar
See Course Finder.