I DEVELOPED FOR LIMITED PARTNERS BY LIMITED PARTNERS 11 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 techniques. 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 monitoring 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 OUTLINE 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 MODULE 2