The ILPA Institute Level II Module 5 focuses exclusively on the assessment of the general partner’s ability to create value with their portfolio companies. The format includes moderator-led discussions, a series of deal case studies, group discussions and presentations delivered by select general partners, operating partners and CEOs of private equity-backed companies. Through the presentations and discussions, participants will learn about current strategies, tools and processes that general partners employ to create and measure value creation from sourcing, execution through to exit. The Module will cover a variety of strategies that may include buyout (mid-market and large buyout), growth equity, venture capital and special situation with GP representation from around the world. The group will discuss the merits, challenges and diligence/assessment of various value creation tools and techniques in a real-world practical context with a goal of honing their skills to distill how managers add the most value to their portfolio companies.
Course Dates and Fees
July 18-19, 2019 (Chicago, US)
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This module will expose participants to value creation methodologies using a company lifecycle approach. The moderator-led discussions along with speakers from a leading mid-market buyout firm will present real- life case examples of value creation strategies utilized at various stages of a company’s lifecycle: 1) pre-acquisition 2) post-acquisition 3) pre-exit and 4) post-exit. One company will be featured, illustrating the value creation strategies at each stage of its lifecycle. Other case examples will also be introduced to demonstrate different strategies (cash flow generation/debt pay down, earnings growth and multiple arbitrage) used for each stage. In addition, select case study deals will be used to discuss and explore value creation methods of a select group of private equity managers from different sectors that may include mega buyout, growth equity, venture and distressed strategies and general partner resources and skills sets. This module will also include the unique perspective of operating partners and CEOs that will provide a practical approach to discussing and challenging the merits of various value creation tools and techniques. Last, new models will be introduced that provide a value creation bridge with specific measurement of key actions taken by the company during the PE ownership phase.
Key Learning Outcomes
After completing this course participants should be able to:
- Identify meaningful value creation drivers that could be employed by general partners related to buyout, growth equity, venture capital and special situation strategies.
- Determine if a manager possesses the required resources and skill sets to execute value creation strategies of the general partner. Uncover if/how a general partner may be executing (i) cash flow generation/debt pay down, (ii) earnings growth and (iii) multiple arbitrage value creation strategies.
- Supported by new value creation measurement tools, evaluate at a detailed level any given manager’s ability to add value through operational engagement, financial engagement or strategic guidance.
- Craft meaningful diligence questions aimed at assessing value creation from deal sourcing to exit.
PROGRAM LEVEL: Advanced
WHO SHOULD ATTEND: Experienced investment professionals working at many different organization types can benefit from the Level II program. Past participants have included representatives from public and corporate pension funds, family offices, foundations, endowments, insurance companies and government organizations who are investing or considering investing in private equity.
PRE-REQUISITE: Three or more years of experience directly managing and monitoring a private equity program. Applicants with less than 3 years of experience are required to have completed the ILPA Institute Level I program and submit a letter of endorsement on company letterhead (sample letter available here). The letter of endorsement will establish that the applicant exhibits managerial and leadership potential. They must also demonstrate a level of professional poise and financial acumen necessary to contribute to a senior learning environment. Candidates will be accepted based on availability and subject to ILPA review.
PRE-READING: Reading and other materials will be sent to participants prior to the start of the session. These will include 2-3 hours of course preparation and required reading as well as suggested readings.
DELIVERY METHOD: Group-Live
CREDIT: Earn 14.5 CPE Credits
Institutional Limited Partners Association is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org