Private Equity - Understanding PE Business Processes and Controls
The objective of this training module is to provide participants with a solid understanding of the principal processes and controls within private equity. This module is taught by a team of recognised experts and may include additional guest speakers to reinforce certain practical aspects.
- Fund set-up & structuring: tax and legal aspects, including practical examples
- Deal structuring and draw down: type of instruments, overview of deal clauses, draw-down mechanism
- Fund raising: strategies and examples, commitment mechanism, closing
- Operations & processes (context AIFMD)
- PE administration (valuation of PE assets, NAV calculation, management fees, the registrar, transfer and paying agent, domiciliation)
- The role of the depositary and its responsibilities in a PE context (overview of vehicles requiring a depositary bank, role and duties of the depositary bank / by instrument)
- Risk management
- The regulatory environment for risk management of AIFs and SIFs
- Defining an AIFMD compliant risk and liquidity management framework
- Identifying, measuring and managing risk (liquidity, counterparty, credit, operational) in the context of real estate.
- Leverage concepts and how they increase the volatility of returns
- Building market and liquidity stress tests (quantitative versus qualitative approach)
- Investment exit: the three main exit routes in Private Equity (IPO, secondary, trade sale)
- Distribution: the waterfall model, theory and practice