Participants will examine key investment principles, explore the role of private equity partnerships and learn the skills necessary to design and build strategies for investing in the asset class. Participants will learn in a highly interactive and hands-on environment. All classroom discussions are focused on ensuring participants solidify and broaden their understanding of private equity. KEY LEARNING OUTCOMES • Articulate how private equity investing fits as part of an asset allocation model: explain the benefits and costs (risks) of investing in the asset class. • Explain how different sub-classes of private equity behave differently/similarly in a private equity portfolio and portfolio construction techniques. • Describe the historical and expected returns of private equity and its sub-classes. • Apply different methods of measuring private equity returns and describe benchmarking techniques. • Construct a quantitative and qualitative private equity due diligence plan. • Describe the different fund reporting standards with UK GAAP, IFRS and US GAAP. • Demonstrate how to analyze different sections within standard private equity reports to monitor performance and/or activity of a private equity fund. • Describe typical fund structures and important aspects to consider in regard to private equity investing. • Identify key terms and conditions in limited partnership agreements and other documents. • Describe the conflicts of interest that a general partner may face as an investor, service provider, administrator of a private equity fund and how this may also create principal/ agent conflicts between the general partner and the limited partners. • Describe general differences that may exist between partnerships or entities governed by the laws of Delaware, the Cayman Islands, Guernsey and other jurisdictions. • Describe the illiquidity risk associated with a private equity portfolio and the impact on a broader investment portfolio. • Describe different methods of measuring private equity risk at the private equity fund level and as part of a broader investment portfolio level. • Describe different valuation techniques that direct investors (e.g., general partners) may use to analyze a potential investment and identify key considerations and factors related to one or more private equity sub-class (e.g., venture capital and buyout transactions). • Articulate how limited partners can use the valuation techniques and templates as part of their own investment process, from due diligence to secondaries to co-investments. 9 PRIVATE EQUITY OVERVIEW • Equity and debt capital markets • Evolution and classes of PE EVALUATING A PRIVATE EQUITY FUND AND FUNDRAISING • Available tools/benchmarking/ returns modeling • Qualitative and quantitative due diligence INVESTING IN LIMITED PARTNERSHIPS • Key economic considerations • Compensation incentives in LPAs • Implications of different fees and terms on the net returns to LPs FUND STRUCTURE, GOVERNANCE,AND LPAs • Governing documents • Delaware/other regulatory considerations • Non-Delaware/non US-considerations • Key terms PRIVATE EQUITY REPORTING AND ACCOUNTING • Reports from the general partner • The audit • Accounting standards • Valuation guidelines • Reconciling financial statements PRIVATE EQUITYAND RISK • Diversification and multiple sources of risk • Historical returns • Measures of risk and return • The impact of limited liquidity on portfolio design DUE DILIGENCE AND VALUATION • Valuation and monitoring • How to access the economics and evaluate the profit formula • Valuation techniques • Designing the appropriate securities and financing strategy • When should the general partner exit COURSE OVERVIEW COURSE OUTLINE