b'JUNE 6 WORKSHOPS10:00am and 12:30pm|Choose two of the following:The Risk and Return of Leverage in 2019Bridging the Generation Gap: How to Identify, SPEAKERS: Patrick Adelsbach, Head of Credit Strategies,Address and Assess GP Succession Plans and Sylvia Owens, Senior Portfolio Advisor, AksiaSPEAKERS: Kate Mitchell, Co-Founder, Scale Venture Partners Leverage remains pervasive in todays private equity markets.and John Hershey, Director of Alternative Investments, Oregon State TreasuryThough perhaps down from levels used in previous years, leverage is a major tool used at the both the fund and portfolioWhen assessing fund manager relationships, LPs all agree that companylevels.Compoundingthetraditionalchallengespeople matter most. This reality can pose significant challenges associated with leverage are the rise of private credit fundswhen long-time GP leadership decides to transition out of raised by many PE managers and the use of subscriptiona firm and pass management on to the next generation of linesofcreditguaranteedbyLPscapitalcommitments.partners.In this workshop, we will be exploring best practices DistinguishingbetweenperformancesachievedthroughtoensurethatGPsuccessionplansareconsideredand leverage and the managers ability to add value is critical tocommunicated to LPs early on so that investors can properly evaluating actual private equity fund success. This workshopassess their viability. The critical elements of a thoughtful will explore the impact of leverage on private equity portfoliossuccession plan will be covered including shifting economics, at both the fund and portfolio company level. The speakersrelationships and responsibilities among the firm as well as will examine the approach and analytics necessary to evaluatesuggested approaches for engaging with the next generation the use of leverage and its risk/return for LP investments.of partners while maintaining appropriate relationships with Additionally, what information can LPs ask for and use tothe departing leaders. We will also discuss manner in which manage this risk/opportunity for return and their resulting GPLPs can measure the success of the leadership transition and relationships more effectively.make sound investment decisions around follow-on funds led by a new team. We will explore a number of cases studies as Putting ILPA Principles 3.0 into Action:well as the important nuances to consider across the various New Ideas for Stronger GP-LP Alignmentfirm and founder types.SPEAKERS: Jennifer Choi, Managing Director of Industry Affairs,ILPA in Collaboration with Principles 3.0Target Opportunities: How to Engage and working group members to be announced Maximize Investments with Independent SponsorsSince the ILPA Private Equity Principles were first published inSPEAKERS: Kevin Charlton, Chairman of the Board, American September 2009, the industry has undergone fundamentalAllwaste and Jon Finger, Partner, McGuire Woods LLPchanges. The industry has become fully regulated in the USIndependentsponsorshavecomealongwayfromthe and Europe, and embraced transparency, in particular aroundcottageindustryofbankers,brokers,andhustlers.The costs. At the same time, fund structures have become moreevolution in recent years of these fundless has increased varied and complex, and the continuing evolution of GPsthe attractiveness of such opportunities among LPs. In this and their platforms presents unique challenges to alignmentworkshop, well consider the most important evolutions in ofinterests. ThelatesteditionofthePrinciplestacklesathe market, including key economic terms that influence this number of these changes with aspirational recommendationsrise in popularity. Well review a case study of an independent intendedtostrikegreaterbalanceinGP-LPrelationships.sponsor-ledinvestment,coveringtheprocessfromdeal This workshop will detail some of the key recommendationssourcing,initiation,executionandongoingmanagement covered in the third edition, on topics such as LPAC bestfor value creation. Well also review some of the key program practices,compliancedisclosures,minorityGPstakesandelements LPs need in order to have an effective, independent responsibleuseofsubscriptionlines,amongothers.Thesponsorstrategy.Finally,welllookatthecharacteristics sessionwillalsooutlineapproachestoprioritizingandindependent sponsors value most when considering their incorporating these ideas into due diligence and investmentcapitalprovideroptions,soLPscansuccessfullyposition monitoring.themselves for the investments most appropriate to their portfolio.8'