Capital Creation 2016 (past event)
19 - 21 September, 2016
44 (0) 207 368 9540
Day 2
MORNING THINK TANK
08:00 - 08:55 MORNING THINK TANK: Women in Private Equity- connecting the next generation of women business leadersWith fewer than 10% of senior level positions in PE held by women, the future success of the industry requires a more diverse set of participants. This masterclass provides a platform for women to form relationships that will help dictate the development of the industry.
- Make direct connections that lead to real business deals, benefitting you and your organisation
- Extend your professional network amongst the next generation of leading women and investment professionals
- Enhance your career by learning from, and being inspired by, some of Europe’s most successful and influential women leaders
Withlimited spaces, guarantee your space now by emailing Susie.benaim@wbr.co.uk
Morning breakfast and networking
08:00 - 08:55 Morning breakfast and networking08:55 - 09:00 Opening remarks from the Chairperson and business card exchange
09:00 - 09:20 KEYNOTE DISCUSSION INTERVIEW: How is Brexit going to impact the European private equity market now and in the short, medium and long term?
- When will one actually see changes and impact on the UK leaving the EU and how will this impact investment behaviour?
- Will EU investors look to diversify portfolios outside of the UK, and if so, how will UK managers need to adjust their jurisdictional structures to accommodate? How different is UK regulation to international standards?
- How will changes in "passporting" impact the way in which non-EU managers access European investors?
- Will EU member states change tax regimes making the UK a less attractive place to delegate investments?
- If and when will changes to the AIFMD and MiFID II third country regimes come into play and what will be the impact for UK fund managers?
09:20 - 10:00 DISCUSSION PANEL: Genuine fund differentiation-What do European funds need to offer to stand out and survive in Europe’s private equity market?
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What makes your strategy unique within the PE space?
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Where do you see most of your investment opportunities today and in the future?
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What does true differentiation constitute for your investors?
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Evaluating the balance between high fees and full transparency- with a quality manager, where is the balance for the investor and how does this impact on fund choice?
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Where can investors find these funds and how accessible are they to get into? What are the investment realities?
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Are you seeing signs of GP strategy drift in a competitive market? Is there once again a bifurcation between the ‘haves’ and ‘have-nots’?
10:00 - 10:40 Morning coffee and networking
10:40 - 11:00 LP QUESTION TIME: Breaking down the new investment requirements of the European pension fund – what do fund managers need to know?
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How is PE perceived by investors and what are the de-risking strategies they are looking at?
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What is the importance of understanding the valuation mechanisms of GPs when evaluating how they manage risk
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What level of transparency is really needed? How is this executed in practice and how can the costs involved be effectively managed?
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The increasing importance of ESG: How is this being reported and how influential is it in choosing new fund managers?
11:00 - 11:50 OXFORD STYLE DEBATE: Fund of funds are not needed in the European PE landscape given the growing professionalism of the investor market - for and against
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For- Growing disintermediation of the market demonstrates that FoFs no longer provide a needed service and investors have the capabilities to investment direct
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For- FoFs are unable to provide separately managed account solutions
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Against- FoFs offer a unique service to ensure investors are front of mind for good investments opportunities
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Against- FoFs provide a necessary route for sourcing good co-investment opportunities in Europe
11:50 - 12:25 DISCUSSION PANEL: What are the new requirements for GP sourcing and how can investors better collaborate with them in today’s competitive market?
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Outlining the requirements for understanding GP team dynamics and does this make for longevity?
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What is the track record of the GP and how is this measured?
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How do fund managers incentivise their team to guarantee the performance required?
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What is the deal sourcing and execution strategy?
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What type of value-add does the GP bring and how can they accurately demonstrate this to the investor?
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How can the GP get the investor more involved in the end investment?
12:25 - 12:50 INTERVIEW: How can data-driven research and smarter investment approaches allow for more effective deal sourcing and capital deployment?
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Identifying what type of differentiation in deal sourcing works in a market where capital deployment is increasingly more challenging
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What are the more disciplined research strategies that really work when sourcing off-market investment opportunities?
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How can you demonstrate alpha in a market where GP quality and deal sourcing capabilities are increasingly scrutinised?
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Evaluating metrics for measuring the success of a deal: IRR vs money multiples- what works best and why when showing capabilities in deal sourcing
12:50 - 13:50 Lunch
STREAM A: Collaboration and Transparency in the LP-GP Relationship
13:50 - 14:00 Chairperson’s opening remarksSTREAM B: Secondaries and Portfolio Restructuring
13:50 - 14:00 Chairperson’s opening remarks
Vincent O’Brien
Chairman , Nesta Impact Investing , Former Chairman, BVCANesta Impact Investments
Interactive workshop
13:50 - 14:00 SYNERGY WORKSHOP: How to overcome funding challenges for fund managers and investors-What are the benefits of capital call bridge facilities?- Bridging facilities: why are they so popular in the current market?
- When would bridging be necessary and why would I use it?
- Understanding the execution of a bridge facility and factors to consider
- What are the credit and legal considerations and repayment processes for these facilities
STREAM A: Collaboration and Transparency in the LP-GP Relationship
14:00 - 14:30 SPOTLIGHT ON INVESTOR RELATIONS: What does IR mean today and how is the investor relations role evolving?-
Moving from sales and fundraising role to a relationship role: How has the market driven this shift?
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How can the increase need for technical expertise changed and what has driven this?
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What is the skill set needed by the IR professional today?
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How can companies realign their organisation to develop a function as such and what are the long term benefits?
STREAM B: Deal Flow and Portfolio Restructuring
14:00 - 14:30 INTERVIEW: How are current developments in the secondary market impacting prices and changing the market for buyers, sellers and investors?-
How are the strategies of different secondary funds developing as the market matures and becomes more competitive?
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What is the impact of the recent mega-fundraisings achieved by the larger secondary funds?
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How is the increasing use of leverage and deferred consideration affecting pricing, returns and cash flows?
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With secondaries no longer being just about entry discounts, what do investors expect from secondaries?
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How can smaller buyers cope in this increasingly competitive environment? How to choose your niche in the market and get better returns.
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Will returns suffer moving forward and what effect will this have on the market?
Vincent Gombault
Member of the Executive Committee and Head of Funds of Funds and Private DeArdian
Interactive workshop
14:00 - 14:30 Stream C continuesSTREAM A: Collaboration and Transparency in the LP-GP Relationship
14:30 - 15:00 QUICKFIRE SOLUTIONS: What are the technology innovations helping drive transparency and business intelligence in fundraising and fund management?-
How are current due diligence requirements driving innovation in the technology space?
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With greater transparency and more complex information recorded, what platforms are capable of managing the data on the fund and investment level?
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How are current platforms allowing LPs more control with more direct and separate account deals?
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What controls are in place to monitor security threats and privacy concerns?
STREAM B: Deal Flow and Portfolio Restructuring
14:30 - 15:00 INTERVIEW: How are GP-led transactions impacting the way LPs balance their portfolios?- How are GPs managing secondary buyers and how does this influence their LP investment strategies?
- Evaluating the levels of transparency and information needed to demonstrate changes in price and how this provides more choice for the seller
- How is a GP’s ability to restructure portfolios impacting how and which GPs the investor chooses to partner with?
- Where are the more niche investment opportunities and how have GPs encouraged this?
- How has remaining in a fund been more beneficial to the end investor compared to selling their stake?
Interactive workshop
14:30 - 15:00 Stream C continuesSTREAM A: Collaboration and Transparency in the LP-GP Relationship
15:00 - 15:40 DISCUSSION PANEL: What does value creation really mean to you?- An outline of LP’s criteria for what good value creation is for them
- How do they evaluate value add and what is really important? Sustainability, profitability- what mix is needed
- Real examples of the dream vs. reality -How has the attitude towards ESG changed and how integrated into current due diligence and value add is it now?
- How has asset allocation changed in reflection to real value add?
- How do GP’s differentiate value creation strategies in practice?
- What role does leverage play in value creation in today’s market?
- How do GPs create growth in a low growth environment?
STREAM B: Secondaries and Portfolio Restructuring
15:00 - 15:40 OXFORD STYLE DEBATE: Fund restructuring is a better route for gaining liquidity than secondary direct transactions- for and againstPaul Newsome Executive Director and Head of Investments Unigestion
Nash Waterman Executive Director Morgan Stanley Alternative Investment Partners
Benoit-Olivier Boureau Managing Director Rothschild, Five Arrows Managers
Alister Wormsley Partner Compass Partners
Moderator:
Christiaan De Lint Partner Headway Capital
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For- Fund restructuring provides a better option when new GPs are not available
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For- Fund restructuring helps reduce costs and fees for all contributors
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Against- Secondary directs are better for the end investor
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Against- Fund restructuring encourages conflicts of interest and impossible challenges for alignment of intent
Benoit-Olivier Boureau
Managing DirectorRothschild, Five Arrows Managers
Alister Wormsley
PartnerCompass Partners
Interactive workshop
15:00 - 15:40 Investor-only session LP BOARDROOM: How to best plan and execute direct investments-
What type of investments do direct investments work best for?
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How do club deals work and can you make yourself available for these?
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Understanding the cost benefits in fee reduction and what this means regarding cost savings
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Evaluating whether challenges around due diligence and time needed to manage the investment works for your organisation
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What are the operational benefits when having more control over the investment?
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What is the long term investment opportunities for investors engaged with direct investments?
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How to source deals and demonstrate due diligence
Break
15:40 - 16:20 Afternoon coffee break and networkingInteractive workshop
15:40 - 16:20 Stream C continuesSTREAM A: The Evolution of Co-investments
16:20 - 16:45 INTERVIEW: How is the growing appetite for co-investments influencing fundraising strategies?Richard Howell Partner PAI Partners
Kaarina Suikkonen Partner Lyrique
Moderator:
Mark O'Hare CEO Preqin
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How are GPs dealing with increased requests for co-investments?
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What are the conflicts of interest that need to be identified and addressed?
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How central is that promise of co-investments becoming to get funds raised?
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How are GPs managing co-investment requests once investors are in the fund?
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What is the reality of GPs forced to do deals given increasing pressures in co-investments and how does this impact returns?
STREAM B: Exploiting Europe’s Private Debt Boom
16:20 - 16:45 FIRE SIDE CHAT: Assessing how recent changes in Europe’s debt market are impacting private equity portfolios and future deal opportunities2. What is the picture of the flow of capital and how are the terms for debt financing changing?
3. Private Debt: Why is Europe’s direct lending market growing? Is Europe following the US? Are these trends happening elsewhere in the world? Is there enough deal supply to support the growing number of debt funds? What should one watch out for in terms of a bubble in Private Debt?
4. CLOs:What is the role of CLOs in this market? and they appear to be highly complex. Are they relevant to investors and if so, why?
5. Investor considerations and concerns: How should a large LP and a small LP think about portfolio construction in Debt vs. Equity managers? and How should an investor think about being compensated for taking different risks such as asset class, credit quality, geography or liquidity?
6. Prediction for where credit is going? Great white hope or great white elephant?
Interactive workshop
16:20 - 16:45 FUNDRAISING MASTERCLASS: How to successfully navigate the European fundraising landscape in light of the new regulatory landscape-
Understanding what AIFMD means to you and your investment plan
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How to accurately explain fees to your investors and how these compare to the returns gained
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What does AIFMD require for reporting processes and formats?
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Update on how carry interest is presented and how this impacts the cost of transaction structures?
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How to best manage compliance costs and what has worked for other funds?
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How have increased transparency requirements put strain on those operating in mid-cap funds and what are the opportunities?
(Recommended for new fund managers)
STREAM A: The Evolution of Co-investments
16:45 - 17:20 THE INVESTOR STORY: Evaluating how co-investments have changed the attitude and behaviour of investors towards private equity- What are the returns being seen in the co-investment market in Europe?
- How have reduced fees changed attitudes to more expensive private equity deals?
- Evaluating what opportunities cost investments has provided regarding further deal opportunities and exposure to other markets
- Discovering how can capital deployment be increased with fund managers and how this reduces the J-curve effect with private equity investing
- Overcoming concerns of FoFs and GPs to do co-investments
STREAM B: Exploiting Europe’s Private Debt Boom
16:45 - 17:20 DISCUSSION PANEL: How are investors’ attitudes towards debt funds evolving and how does this impact current allocations and future investments?- What are the long term investment opportunities with debt structures?
- Evaluating the risks and merits of different debt strategies and products: How can the debt industry provide attractive offerings and can this cost structures be supported?
- What is the reality of private debt vs private equity returns and how is this changing allocation of the two?
- How have allocations changed and what are the predicted allocations for 2017
- How is the secondary private debt landscape developing and where are the transactions being found?
- How can you ensure that the debt funds have the necessary exposure in the market and can find good deals
- What type of funds and capital structures are investors are investing in? Mezzanine, senior debt etc.
Vincent O’Brien
Chairman , Nesta Impact Investing , Former Chairman, BVCANesta Impact Investments
