The Private Equity
2016 Conference The Latest Developments & Trends and the Road Ahead
Europe’s leading topical and research based banking and corporate finance conferences
London, 7th Nov 2016
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Expert Speakers From
Private Equity industry has faced, and overcome, multiple obstacles in the past but Brexit poses a
completely new set of challenges as the outcome is largely in the hands of politicians. It is trite that
the regulatory landscape for PE has become more hostile of late and legislation such as the
Alternative Investment Directive has arguably done enormous damage to very little good effect.
Whether financial services in the UK can reap the best of access to the EU with lower regulatory
burdens remains to be seen. In any event, tax authorities around the globe are making concerted
efforts to target both thin cap rules and carried interest which will affect the UK whatever the
outcome of negotiations with the EU
On the investment front, value creation remains testing with entry multiples near record peaks
driven by a combination of benign macroeconomic factors, particularly low inflation and feeble
growth, together with industry factors in the shape of a wide availability of both equity and debt.
On the equity front, Private Equity remains highly competitive. Funds have record amounts of dry
powder at their disposal whilst well-capitalised corporates buyers prowl in the wings. Co-investing
remains a feature of the market being both a boon and a bane, but the last year has seen LPs
ramping up their own direct investment arms whilst Special Accounts are fast gaining traction.
Though debt markets continue to provide copious amounts of capital from traditional sources, this
has been matched by alternative lenders who can deploy significant tranches of debt, in some cases
over €500 million per deal, and on increasingly borrower-friendly terms. Whilst this does not augur
well when the economic cycle turns, it will provide opportunities for the turnaround segment of the
market.
Against this backdrop, deal origination and value creation remain key concerns. The answer to the
former is to develop a direct origination strategy although this takes time and money. As to the
latter, some industry experts note that a narrow focus on IRR, at the expense of other metrics of
value creation, can encourage shorter holding periods, thus boosting reinvestment risk in a testing
market.
This conference draws together the leading experts who will provide commentary and an insight into
the key issues and trends affecting the Private Equity industry and will give the attendees the
opportunity to ask questions to the expert presenters.
I look forward to welcoming you on the day of the conference.
Michael Dance Senior Consultant, Grant Thornt on
Welcoming note from the conference chairman
08:15-08:45 – Coffee & Registration
08:50 – Chairman’s Opening Remarks
Michael Dance – Senior Consultant, Grant Thornton UK LLP
09:00 – Private Equity Recent Trends and Developments – The Good, the
Bad, the Ugly
Gemma E. Farrell – Director, CVC Capital Partners
Overview – The Current Climate
Brexit – In, Out, Shake it All About
Increased Competition – More buyers, More capital
Valuations – Can They Go any Higher?
Where are the Hotspots – What is the Best Investment Approach?
Questions & Answers
09:35 – Deal Sourcing – The Magic Ingredients
Jacques Callaghan – Senior Managing Director, Macquarie Capital
The importance of “Brand”, “Reputation” and “Differentiation” Is market behaviour driving process and pricing?
Different approaches to origination
Go with what you know – Sector focus boosts returns
Direct origination – It’s difficult but worth it Leveraging In-house relationships
Developing specialist origination, sector-focussed teams
Hire the right people with persistence, judgement and personality
Utilising effectively Senior Advisors, Chairmen and Consultants
Targeted cold calling
Different types of deal sources
Intermediary relationships are key
Questions & Answers
10:10 – Mid-Market Lending
Lord Leigh of Hurley – Senior Partner, Cavendish Corporate Finance
Alistair Hay – Partner - Debt Advisory, Cavendish Corporate Finance
How have funding options changed over the last year?
Impact of larger syndicated loans
Have bond markets continued to provide a viable option?
Direct lenders – Friend or foe?
Non-sponsored Corporate’s – Have they been left on the side lines?
Questions & Answers
10:45 – Morning Coffee & Networking Opportunity
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11:05 – Distressed / Special Situations – Riding the credit cycle…uphill or downhill?
Richard Heis – Partner and Global Head of Restructuring, KPMG
Look back in anger – How has the market fared in the last year
How has Brexit affected sentiment and what does the future hold
Where are the major points of friction in a post Brexit world (CoMi, Schemes)
Where sectors will offer the best opportunities in the year ahead: Oil & Gas, Minerals,
Retail, Commodities, Mining & Minerals, Steel?
What about the maturity wall?
Will the current high levels of gearing and borrower-friendly terms end in tears
Investment opportunities on the horizon
Questions & Answers
11:40 – European Leveraged Debt Market – All at sea
Paolo Grassi – Managing Director, HY & Leveraged Loan Origination, BNP
Paribas
Leveraged Markets Snapshot – The age of maturity?
Key Dynamics – HY Bonds vs Loans
Leveraged Debt Instruments – What’s in the toolkit?
Market Liquidity – Focus on Bank and Fund Appetite
Deal Supply – Any light beyond the current deal shortage?
HY Bond & Loan Documentation – And the Winner Is…
Takeaways and Looking Forward – How will Brexit affect the market landscape?
Questions & Answers
12:15 – Infrastructure & Renewables
Ram Kumar – Director, Energy & Infrastructure, KKR
The investment landscape today: the latest developments and challenges for the G20
Global Infrastructure Hub
What are the priorities to address?
Developed market vs emerging markets
New approaches to lift the quality of public and private investment in
infrastructure
Asset recycling via Privatisations – Which countries are most conducive to private
Infra-investment?
Which sectors offer the best opportunities for value creation?
What about renewables:
A road to nowhere when the subsidies stop? Costs vs Gain
The climate for investment
What about the Government – Regulatory landscape
The future for renewables
Questions & Answers
12:50 – Lunch & Networking Opportunity
14:00 – Private Equity Fundraising Environment – Feast or Famine?
Michael Halford – Head of Investment Funds, King & Wood Mallesons
The balance of power between LPs and GPs – Who has the upper hand?
Management fees – During and after the investment period, rebates of deal-related
fees against management fees
Performance fees – Basis for distribution of fund proceeds, carried interest, hurdle
rate (preferred return), GP catch-up rate
Governance issues – Key man, divorce, diversification, fund extension
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Co-Investments – Benefits of co-investing, GPs offering co-investment rights,
management fees, carried interest
Special Accounts – Current developments, carry, are they here to stay?
Impact of Brexit on fundraising
Questions & Answers
14:35 – Private Equity Trends and Themes in 2016 & Outlook for 2017
Anna K. Skoglund – Managing Director, Goldman Sachs
Current Private Equity Themes
Key Areas of Activity
Trends Supporting Sponsor M&A
Major deals – closed and in progress
Who is selling and who is buying?
Where in the world? US, Europe and Asia
Ways to Participate in the Current Market Environment
Deploying Capital Today
Innovative Financing and Transaction Structures
Case Studie
Changes in the Global Private Equity Landscape
Evolution of the Industry Players
Emergence of Non-traditional Buyers
What are the driving factors in 2017?
Questions & Answers
15:10 – Afternoon Tea & Networking Opportunity
15:30 – Review of the direct and alternative lending funding landscape for
Private Equity
Fenton Burgin – Head of UK Debt Advisory, Deloitte LLP
Overview of the direct lending landscape: funds vs banks…and the winner is?
Spectrum of funding options
Direct lending for mid-caps
Size doesn’t matter – How big and how small can direct lenders stretch?
Direct lending strategies – Take and hold vs sell down: will we follow the US
market in developing a clubbed market?
Direct lending to non-PE corporates – Can funds gain traction & achieve
acceptable returns?
Questions & Answers
16:05 – The Trojan Horse – Co-investment, Direct Investment and Separate
Accounts
Claudio Siniscalco – Managing Director & Global Co-Head of Co-investments,
Deutsche Bank Private Equity - Deutsche Asset Management
Co-investment – What are the main challenges for LPs?
Recruitment, lack of skills & resources
Inertia/Inability to meet tight deadlines
Direct Investment
Will it ever replace Private Equity commitments?
Can the LPs recruit and retain the right talent? Show me the money
Can they handle the heat in the kitchen when the going gets tough?
Separate Accounts
Is the rapid growth sustainable?
Are these arrangements a conflict of interest?
How can the parties mitigate potential conflicts or problems?
8:50-17:30
London
£595 + VAT (£714)
Discounts available for multiple participants:
3-4 participants: 15% discount per participant
5-6 participants: 20% discount per participant
7-8 participants: 25% discount per participant
9 or more participants: 30% discount per participant
Special Discounted Rates for Sponsors
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Participants will have the opportunity to ask questions and raise issues with the expert
presenters.
16:40 – The Tax and Regulatory Landscape for Private Equity
Lisa Cawley – Partner, Kirkland and Ellis International (UK)
Jonathan Kandel – Partner, Kirkland and Ellis International (UK)
How will Brexit affect the regulatory landscape
What about thin capitalisation
Group tax developments
Withholding and other taxes
Never mind the carry – Clouds on the horizon
Impact of regulation
AIFMD – is there any good news? How are things working in practice?
Transparency and Disclosure
Questions & Answers
17:15 – Chairman’s closing remarks
Michael Dance – Senior Consultant, Grant Thornton UK LLP
17:30 – End of Conference
8:50-17:30
London
£595 + VAT (£714)
Discounts available for multiple participants:
3-4 participants: 15% discount per participant
5-6 participants: 20% discount per participant
7-8 participants: 25% discount per participant
9 or more participants: 30% discount per participant
Special Discounted Rates for Sponsors