Private Equity as an Asset Class
In - House
Intensive 2 day workshop for Investment and Private Banks, Asset and Fund Managers, Institutional and Private Investors exploring:
- The latest trends in the private equity sector
- Qualities of private equity as an asset class: risk, volatility and correlation
- Implementing private equity in an investment portfolio
- The best ways to obtain exposure to private equity
- Exit strategies
- Private equity in emerging markets
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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 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.
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
What Will You Learn By The End Of This Training
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
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
Teaching Method
This is a highly practical course with many real life case studies and exercises. Tutor will be focused on teaching practical strategies that can be taken back to your business and put into immediate effect.
You will benefit from comprehensive take away course documentation.
In order to help us establish your individual and business concerns, you will be asked to fill a pre-course questionnaire.
Because of the nature of the course the number of places is limited and will be filled on first come, first accepted basis. We advise to book in advance in order to avoid disappointment.
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
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.
IN-HOUSE TRAINING
If you have a team of 4 or more this course can be customised and organised in-house at your convenience. Contact one of our advisors to find out more.
Call now on +44 (0) 20 7193 5035
or send an e-mail to enquiry@eurekafinancial.com
