In recent times, pension schemes have significantly increased allocations to alternative asset classes and, in particular, to private equity and infrastructure assets. The theoretical investment argument for these allocations is sound, given the high prices of traditional public investment assets, the liquidity premium that pension schemes can harvest and the creation of new capital assets which suffer less from the surfeit of saved capital chasing too few public equities and bonds in most capital markets, which increase prices and reduce yields.
In addition to analysing the potential portfolio diversification benefits of private assets, delegates will examine the principal types of private equity, ranging from venture capital through to growth equity, late stage/pre-IPO investments and buyouts. This course will also cover the investment vehicles and fund structures used as conduits for pension scheme investment.
Delegates will discuss the suitability of different types of infrastructure assets for pension scheme investment, and draw the careful distinction between these and “public goods” perhaps more appropriately funded by taxation.
On completion, you will be able to:
- Appreciate the increasingly important role played by private equity in investment
- Understand the fundamental drivers behind the evolution of the market
- Analyse the risk/return profile of private equity investment
- Identify the principal actors in infrastructure project finance transactions
- Appreciate the key factor of liquidity in private assets vis-à-vis mainstream securities
- Understand the important differences between infrastructure and public goods
- The nature and risk/return profile of private asset investment
- Rationales for pension scheme allocation to private equity and infrastructure
- Pitfalls in private asset investment and the key role of effective due diligence
- Realistic liquidity analysis in public and private asset markets
- Evolution of private investments and key exit strategies
- Project finance structures and participants
All courses will be conducted entirely in English. A proficient level of both spoken and written English is required by all delegates so that they are able to fully benefit from the course and participate in our interactive style of training.