Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 21 DEVELOPED BY LIMITED PARTNERS FOR LIMITED PARTNERS This Level II module will provide mid-to-senior level participants with an analysis of the strategic considerations and techniques used to design and manage private equity investment programs. Through this intensive two-day program, participants will obtain a comprehensive understanding of portfolio level deliberations as well as the core skills and methods that provide a programmatic approach to portfolio design, program execution and risk management. KEY LEARNING OUTCOMES • Describe the role of private investments in a portfolio and evaluate the key elements of private equity investing that impact program and portfolio objectives. • Identify and describe different private investment programs and portfolio strategies including but not limited to sub-strategy, investment structure, geography and their suitability for meeting program objectives. • Differentiate between several private investment performance measurement tech- niques. Describe why these comparisons may or may not be appropriate and the implications of such. • Describe types of private equity risk at a portfolio level, including correlations, and how each type of risk may be measured and the concerns that a practitioner may have with these measures. • Describe and evaluate techniques for allocation and liquidity management for a private investment program. • Identify organization and overall resource requirements for executing and monitor- ing a private investment program, including articulation of considerations for any third-party service provisioning. • Describe how private equity data, analytical tools and techniques may be used in regard to quantitative modeling and assessments, and program forecasting. COURSE OVERVIEW ESTABLISHING PRIVATE INVESTMENT PROGRAM OBJECTIVES • Asset allocation and the role that private investments serve in a portfolio • Traditional allocation analysis and considerations unique to private investments • Broad private investment sector allocations • Private investments compared to other asset classes • Compatibility of private investment strategies and desired objectives • Risk/return opportunities and liquidity needs at a portfolio level • Measuring and assessing expected/actual portfolio risk and returns • Risk assessment and management DESIGNING, DEVELOPING AND EXECUTING A PRIVATE INVESTMENT PROGRAM • Private investment strategies • Investment considerations and diligence across geographies, strategies and styles • Allocation approaches within private investments • Organization, coordination and resource management • Approaches for programs of varying degrees of maturity • In-house and/or outsourcing program decisions • Observation and incorporation of macro perspectives • Risk assessment and management • Cash/liquidity management ASSESSING AND MONITORING PRIVATE INVESTMENT PROGRAM PERFORMANCE • Private investment performance measurement techniques • Commitment pacing and risk/return modeling • Compatibility of private equity strategies and desired objectives • Investment monitoring practices at an investment and program level • Monitoring of cash flow and distribution waterfalls • Managing GP/LP dynamics COURSE OUTLINE