Fundamentals of the Private Markets

The programme will explain the role of the Private Markets in the modern portfolio providing participants with a working knowledge and practical understanding of the marketplace. During the sessions we will explore the range of different investment solutions across the risk return spectrums from Private Equity to Private Credit and Real Assets and the challenges of investing in this asset class.

Key Learning Objectives:

• Understand the role of the Private Markets as an alternative asset class in the modern investment portfolio
• Familiarity with the key terminology used in this asset class
• Analyse and understand the marketplace for private capital – the size, trends, issues affecting the market and major participants
• Define and describe the different strategies and structures available for each sector
• Provide and understanding of the risk profiles of each sector within this asset class and their potential returns

09:30 Introduction to the Private Markets

• The evolution of private capital assets under management over the last ten years
• Why Private Markets? – the role of the Private Markets in the modern portfolio
• Differentiating between the Public and Private markets
• Surveying the private markets universe – the spectrum of investment solutions available
• The drivers behind the growth – the need for return, income and diversification
• A look at the asset class correlations and returns
• Why Private Markets offer higher returns than traditional assets
• The potential premium earned and understanding the illiquidity risks
• Typology of investors and their priorities
• How do investors think? What do investors want?
• Sources of capital and constraints

11:00 Coffee Break

11.15 Fundamentals of Private Equity

• What is Private Equity?
• The different types of private equity transactions
• The role of PE in the institutional portfolio
• The mechanics of private equity investing
• Return objectives by stage and need for diversification across vintage years
• Private equity fund structure and economics
• Value drivers in a private equity investment
• The General Partner/Limited Partner relationship model and the fee structure
• The life cycle of a primary trade – the flow of capital and the J curve
• How secondary markets work
• How private equity managers make money on deals
• Investment process overview and analysis of transactions
• Risk analysis and mitigation, due diligence and manager selection

12:30 Lunch Break

13.30 Fundamentals of Private Credit

• What is Private Credit? (direct lending)
• Defining Private Credit and comparing it traditional credit markets
• The investors’ perspective – the pros and cons
• Typical features and opportunities across the market cycles
• Understanding the capital structure and the risk/return dynamics
• Capital return maximising and opportunistic strategies – distressed debt and special situations
• Opportunities across geography and industry
• Manager selection criteria and due diligence
• Credit terms and legal documentation

15:00 Coffee Break

15.15 Fundamentals of Real Estate

• Investment characteristics of real estate – Real estate as an asset class
• Key property characteristics
• Direct vs. indirect investment channels
• Commercial development vs. the residential markets
• Sources of value – rental payments, pro-active management of yield movements
• Drivers of rental and capital values – total return
• Correlation relationships with other asset classes
• Real estate valuation – overview of the three valuation methodologies

16:00 Fundamentals of Real Assets and Infrastructure

• Review of the investable universe
• Investment themes, sector exposure and Real Asset characteristics
• How Real Assets can improve traditional portfolios
• Real assets increased risk-adjusted returns of traditional portfolios
• Matching responsible investment implementation to asset selection
• The case for using real assets to gain exposure to thematic, impact or green investments – the ESG perspectives

16:30 Additional Q&A session

16:45 End

This course is delivered at an introductory and will be useful to a wide range of staff working in all areas of the business, including new starters and staff transferring between functions, as well as staff in supporting roles. It will also be a useful refresher for those with more experience who will benefit from an opportunity to improve their understanding of the evolving Private Markets:

• Marketing/Sales/Distribution/Business Development Officers
• Customer Support and Reporting Officers
• Human Resources
• Wealth Managers
• Distributor Relationship Management
• Investment Operations and Administration Officers
• Risk Managers
• Auditors and Compliance Officers
• Legal Officers 

Russell Hammerson

Russell Hammerson is an experienced banker working with structured products and exotic options over 15 years.

Russell started his career in the fixed income trading division at Chase Manhattan in 1986. After having graduated from the Chase nine-month advanced financial risk analysis programme, he was seconded to the Chase insurance banking division for a year. Taking his insurance expertise with him, he later moved to Citibank to work in the financial engineering division, structuring fixed income and equity products for institutional investors.

From Citibank, Russell moved to Bear Stearns to help set up the newly established equity derivatives group as associate director responsible for marketing and structuring of European products prior to becoming head of structured products at Commerzbank.

Before moving into the technical training arena, Russell ran the structured product group at Banque Nationale de Paris followed by Bankgesellschaft Berlin, London, in a similar role as head of engineered products and international new issues and director of the London Management Committee.

Russell has been training all areas of capital markets since 2001. At BG Consulting (now trading as ZISHI Cornerstone), he specialises in structured products, equity and credit derivatives and exotic options.

IA Member £645.00 +VAT
Non-Member £795.00 +VAT

Pay using a credit card online, or if you wish to be invoiced please email your full details to: Training@theia.org

PLEASE NOTE: Full payment for the course must be made prior to the course commencement date.

• Any cancellation must be made in writing.
• For all cancellation received 15-30 days prior to the course start date, 50% of the course fee is still payable.
• No refund is given for a cancellation made 14 days or less prior to the commencement of a course.
• Transferring from one course to another is treated as a cancellation. You can substitute one delegate for another at no additional cost. In this instance, please give two business days’ notice.

Hybrid Training Courses:

Hybrid deliveries of our training allows participants on our courses the option to attend in-person here from our offices at Camomile Court, or you can attend virtually via MS Teams.

Please be advised a training course could change from hybrid delivery to solely virtual delivery. In such an event, we will inform delegates at least one week prior to the course delivery date.

There are a limited number of in-person spaces available on this course and this will be allocated on a first come first served basis.