What past delegates say?

More than excellent 5+!
 
Wealth Manager, Baloise Group
 
“Excellent learning experience. Will recommend to my peers.”
 
Former Delegate, Rabobank 
 
“I am able to bring back the new knowledge gained during the course and hope to use it in my work.”
 
Former Delegate, Brunei Investment Agency 
 
"Would definitely attend more of your courses!"
 

Past Delegate, Rabobank    

Media Partners



Investing in Private Equity

Register Now

In-company, call us for more information

Course Description

This 2 day hands-on training provides participants with a practical understanding of the private equity industry as well as the latest sector trends. Run by a former Head of European Equity team from a leading financial institution, the course explores different types of private equity transactions, techniques for evaluating risk and structuring debt package. Delegates will also learn about the key attributes of private equity as an asset class and main financial ratios which have to be analyse in order to make accurate investment decisions.

Course Level

  • This course is suitable for all levels

What Will You Learn

By the end of this course you will:

  • Understand characteristics of private equity as an asset class and what to look at when investing in this sector
  • Learn about the latest market trends and be able to assess the best investment opportunities
  • Be aware of the key drivers of activity and debt structures in the current market
  • Calculate the internal rate of return (IRR) and  build a simple leverage transaction model
  • Understand the concepts of capital commitments and the J curve approach to private equity investment

Main Topics Covered During This Training

  • Private equity as an alternative asset class for investors
  • The key attributes of private equity as an investment class
  • Analysing different types of private equity transactions
  • Principles of leverage transactions: assessing which businesses are suitable for leveraged transactions
  • Assessing key business risks and financial ratios
  • Modelling a leveraged transaction
  • Structuring the debt package
  • Private equity in a private client portfolio
  • Current trends in the private client market
  • Latest trends in the private equity sector

Who Should Attend

This course is relevant for anyone wishing to understand how the private equity industry works and how do discuss private equity investments with clients.
No prior knowledge of private equity and leveraged transactions is presumed for this course.

  • Private and Institutional Investors
  • Private Banks
  • Corporate Finance
  • Private Equity Investors
  • Consultants
  • Lawyers
Register Now

In-company, call us for more information

Group discount: 2 people - 5% discount, 3 people - 10% discount. Delegates have to be from the same company and register at the same time in order to claim the discount.

Investing in Private Equity - 2 Day Programme

Day One

What is private equity?

  • Private equity as an alternative asset class for investors, the key attributes of private equity as an investment class
  • What are the aims of private equity firms?
  • Who are the private equity firms and what deals have they done?
  • Why has the private equity industry caused such controversy and been in the news so much?

Private equity transactions

  • Basic principles of leverage transactions
  • Different transaction types: Management Buyouts (MBOs); Management Buyins (MBIs); Public to Privates (P2Ps); Recapitalisations; Secondaries and Tertiaties.
  • The differing objectives of business vendors, private equity firms, management and banks
  • The concept of free cash flow for debt pay down
  • Understanding the key drivers of the internal rate of return (IRR)

Case study: Performing a simple leveraged transaction analysis to see if a transaction would meet a target IRR.

Which businesses are suitable for leveraged transactions?

  • The bank perspective: predictability and visibility of cash flows
  • The private equity perspective: growth potential or an ‘angle’
  • What is the life cycle of a typical leveraged transaction?
  • Exit strategies

Fundamentals of credit analysis for assessing debt capacity of a leveraged transaction

  • Assessing key qualitative business risks
  • Country risk
  • The external environment and industry-specific risk
  • Company’s competitive position
  • Internal company analysis
  • Identifying and analysing the key cash flow drivers
  • Profit, balance sheet and cash flow ratios
  • Profitability, financial efficiency and credit ratios
  • Using the ratios – trends, forecasts, peer comparisons

Day Two

Modelling a leveraged transaction

  • Simple profit and loss and cash flow
  • Debt modelling
  • Rates, ratios, covenants
  • Payback: amortisation vs. cash sweep
  • Exit and returns analysis
  • Sense check v non-financial knowledge
  • Management Case, Bank Case and Sensitivities
  • Modelling scenarios and the Payout case

Case study: Build a basic leveraged model from scratch

Structuring the debt package   

  • Sources and Uses of funds
  • Layering debt
  • Senior debt tranching
  • Second lien debt
  • Mezzanine and other subordinated debt
  • Pricing for risk
  • Syndication
  • Getting a leveraged transaction through a credit process

Case study: Typical loan document from an LBO deal.
 
Private equity in a private client portfolio

  • Capital commitments, phased investment for private clients
  • The J curve effect
  • Current trends in the private client market

Latest trends in market place

  • The effect of the credit crunch on private equity
  • Syndication problems
  • “Cov-lite” deals – a thing of the past?
  • Changes to Capital Gains Tax
  • Current trends in leverage multiples, pricing and structures

Mike Corless

The course director is a qualified chartered accountant who begun his career in Grant Thornton International and since 1986 worked in  Ernst & Young as a senior manager in the corporate advisory team, working on major acquisitions, disposals, IPOs and insolvency/restructuring transactions.

In 1989 he joined Threadneedle Asset Management as an analyst, becoming a fund manager specialising in income funds in 1991. In 1996 he joined Scottish Widows Investment Partnership as a director in the UK Equity team, again specialising in income funds. On becoming head of UK Equities in 1998, he introduced a new investment process incorporating cash flow based corporate valuation techniques. In 2000 he was appointed head of UK Equities when Scottish Widows was acquired by Lloyds Bank and he led the integration of the UK Equity teams.

In 2001 he joined HSBC Asset Management as European Head of Equity Research, managing a team of analysts in Paris and London tasked with developing a new research team and research process.In 2004 he was appointed Global Head of Equity Research, responsible for 60 global equity research analysts and 40 global credit analysts. He developed a global valuation and research process, training local analysts in Europe, the US and Asia in its use.

In 2006 he joined BG Consulting Group, a professional training company, as the head of investment banking and investment management managing a team of 12 trainers. His experience at BG included managing major graduate programmes for investment banking and investment management clients, training graduate to managing director level participants and advising clients on their training requirements for accountancy, corporate finance and valuation, investment management and private wealth training. 

His clients have included HSBC, Morgan Stanley, Deutsche Bank, Citigroup, Allen & Overy, JP Morgan, Barclays Bank, Barclays Wealth, Morgan Stanley Investment Management and Schroders.

* - Fields marked with a star are obligatory.

Your privacy is important to us and we will not share your details with any third-party.

Submit

Thank you for your interest in our company and your enquiry. We will contact you shortly.

In the meantime, did you have a chance to see what our clients say about us?

Follow us on:


* - Fields marked with a star are obligatory.

Your privacy is important to us and we will not share your details with any third-party.

Subscribe

Thank you for your interest in our company and your enquiry. We will contact you shortly.

In the meantime, did you have a chance to see what our clients say about us?

Follow us on:

Investing in Private Equity <p>This 2 day hands-on training provides participants with a practical understanding of the private equity industry as well as the latest sector trends. Run by a former Head of European Equity team from a leading financial institution, the course explores different types of private equity transactions, techniques for evaluating risk and structuring debt package. Delegates will also learn about the ... In-company