Investing in Private Equity

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Course Description

Private equity is an asset that has become widely accepted as a key component of investment portfolios. Its major advantage is that it delivers attractive risk-adjusted returns with fairly low correlation to equities and bonds.

This two day course will explain all aspects of private equity as an asset class and equip you with the most efficient and up-to-date portfolio implementation techniques. 

You will gain practical tools to analyse risks, manage due diligence process as well as evaluate and select investments.   

Finally, you will explore current market trends which will help you assess the best ways of obtaining exposure to private equity.

Run by an experienced banker who specialises in asset allocation and portfolio management this training will give you practical tools to optimise portfolio by implementing private equity as a part of your investment strategy.

What Will You Learn

 By the end of this training you will:

  • Understand the nature and characteristics of private equity as an asset class
  • Gain all the tools to analyse and implement private equity in an investment portfolio
  • Understand due diligence process as well as risk management and portfolio measurement techniques
  •  Assess different ways of obtaining exposure to this asset class
  • Learn how to construct the portfolio and achieve diversification
  • Understand current trends in the Middle East private equity sector as well as in Asia
  • Explore current market trends including exposure to emerging markets and what lessons can be learnt from the North American and European markets

Main Topics Covered During This Training

  • Private equity in context
  • Stages and types of investments
  • The case for private equity in an investment portfolio
  • Analysing risk, volatility and correlation
  • Leveraging
  • Practicalities of constructing private equity portfolio: allocation, diversification and implementing the strategy
  • Portfolio measurement and management
  • Practical aspects of selecting investments
  • The best ways to obtain exposure to private equity
  • Due diligence process
  • Understanding the risks
  • Exit strategies
  • The skill set of private equity manager
  • Current market trends: the globalisation, emerging markets
  • Evaluating private equity investment

Who Should Attend

From Investment and Private Banks, Funds and Asset Managers, Pension Funds and Insurance Companies as well as other Institutional Investors, Consultancies and Lawyers:

  • Portfolio Managers
  • Alternative Investment
  • Fund Managers
  • Private Investors
  • Wealth Managers
Register Now

In-company, call us for more information

Group discount: 5% for a booking of 2 and 10% for a booking of 3. Delegates have to be from the same company and register at the same time.

2 Day Programme

Introduction and background to Private Equity

  • Introduction
  • Definition of Private Equity
  • Stages of investment
  • Types of investment (MBO, LBO, Venture Capital, Mezzanine)
  • History of the industry
  • The main sources of Private Equity
 
Case Study: The Economic impact of Private Equity in the UK
 
The case for Private Equity
 
  • Long term historical performance against public markets
  • True stock picking
  • Absolute returns
  • Portfolio diversification – combining private equity with conventional asset classes
  • Risk, volatility and correlation
  • Correlation between Private and Public Equity
  • Exposure to smaller companies
  • Access to legitimate inside information
  • Ability to back entrepreneurs
  • Influence over management and flexibility of implementation 
  • Access to leverage

The fundamentals of Asset Allocation and Portfolio Construction

  • Overview of the investment management process
  • The “traditional” asset classes (cash, bonds and equities)
  • Investment styles: active vs passive
  • Core and satellite management
  • Tracking “alpha” and “beta”
  • Risk, diversification and correlation
  • The role of Alternative Investments
  • The case for Hedge funds
  • The case for investment in Real Estate
  • The case for commodities
  • Asset allocation in action
 
Constructing the Private Equity portfolio
 
  • The size of the private equity allocation
  • How many funds/investments to commit to
  • Achieving diversification
  • Managing illiquidity and cash flow volatility
  • Implementing the strategy
 
Monitoring the portfolio and measuring performance 
 
  • Monitoring
  • Measuring performance
  • Valuation of investments and the concept of “fair value”
Practical aspects of selecting investments
 
  • The different ways to obtain private equity exposure
  • Fund of fund structures and their benefits
  • Investing and buying in the secondary market
  • Types of fund structure
 
Due diligence
 
  • The importance of manager selection
  • The importance of fund selection
  • The importance of selecting the right fund structure
  • The Limited Liability Partnership 
  • The relationship between the General Partner and Limited Partners
  • The correlation between the size of the of an investment and its success
 
Understand the risks
 
  • Long term nature of investment
  • Increased resource requirement
  • “Blind pool” 

 

The skill set of a private equity manager

Exit strategies
 
Current trends in the market place 
 
  • The globalisation of Private Equity
  • What lessons can be learnt from the North American and European markets?
  • Are regional private equity funds preferable?
  • Examining the rush to emerging markets
  • China
  • India – opportunities and challenges
  • Has Private Equity become a mainstream investment?
  • The outlook for Private Equity returns
 
Workshop session: How to evaluate a Private Equity investment 
 
This session will be based on case studies and will cover a broad range of considerations including:
  • Performance - Track record
  • Team – access to the best General Partners
  • Strategies
  • Deal Flow
  • Diversification – by strategy, by market etc
  • Research
  • Due diligence process
  • Cost efficiency
  • The case for Fund of Funds

Bill Humphreys

Our Course Director began his private banking career  with Royal Bank of Canada where he spent 15 years in a wide variety of senior roles covering almost all aspects of the private banking business both onshore (London) and offshore (Bermuda). During this time he led successful asset management, trust and banking operations, focusing on the needs of international high net worth and ultra high net worth private clients.

He  was also a member of the Global Private Banking Management team and managed many aspects of the integration of a substantial international private banking acquisition.

He has also worked with Swiss private banks where he was responsible for developing the international private client market in the UK. Throughout this period, he also maintained a portfolio of high net worth international private client relationships. 

Our Trainer has broad general wealth management experience but his particular area of expertise is in developing financial planning solutions for international high net worth private clients and their businesses that have complex cross border planning issues. In this capacity he has marketed private banking solutions to other centres of influence including private client and tax lawyers, accountants, independent financial advisers and brokers.

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Investing in Private Equity <p>Private equity is an asset that has become widely accepted as a key component of investment portfolios. Its major advantage is that it delivers attractive risk-adjusted returns with fairly low correlation to equities and bonds.</p> <p>This two day course will explain all aspects of private equity as an asset class and equip you with the most efficient and up-to-date portfolio implementation tec ... In-company