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Pre-conference master class: Monday 17 November 2008
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| INTRODUCING PRIVATE EQUITY AS AN ASSET CLASS
WORKSHOP HIGHLIGHTS
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- Defining private equity
- Understanding how a private equity firm works
- Analyzing buyout and venture funds
- Examining the principles of due diligence
- Planning a fund program
- Exploring the returns you can expect
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| ABOUT THE WORKSHOP |
With expected returns of between at least 3% and 5% above those of general equity indices, private equity has become an established asset class within institutional portfolios. The past few years has seen a significant increase in allocations to private equity funds and a growing number of investors are looking to either extend their current allocation to this asset class, or explore it for the first time. Significant returns on this asset class are possible, but only if the private equity programme is implemented and managed correctly.
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| INTRODUCING PRIVATE EQUITY AS AN ASSET CLASS |
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9.15am | Welcome and introduction
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9.30am | What is private equity?
- Terminology and definitions
- Direct versus Indirect
- Buyout versus venture
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10.15am | Private equity returns
- How a private equity fund works
- Compound and vintage year returns
- The J-curve
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11am | Morning tea and coffee
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11.15am | Buyouts
- What is buyout?
- What are the return drivers?
- How can we analyse buyout funds?
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12pm | Venture
- What is venture?
- What are the return drivers?
- How can we analyse venture funds?
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12.45pm | Lunch
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1.30pm | Due diligence
- General principles
- Specifics (1) buyout
- Specifics (2) venture
- Other: fund of funds etc
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2.15pm | Planning a fund programme
- Cashflows and timing
- Allocation levels
- Secondaries and mezzanine
- Total return
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3pm | Afternoon tea and coffee
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4.15pm | A look at returns
- Historic buyout returns
- Fund size implications
- Historic venture returns
- The Golden Circle
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5pm | Questions and wrap-up
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Day one: Tuesday 18th November 2008
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8.15am | Registration
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8.50am | Chairman’s opening remarks
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9am | Opening keynote address: new market opportunities and horizons for Middle East private equity
- What has the Middle East private equity market shown it is capable of?
- Local vs. international recognition – global market positioning
- Family offices, conglomerates, IPOs and the local buy-out business
- The outlook for 2009-2010
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9.30am | Keynote address: private equity in uncertain times – where is the fall out from the credit crunch?
- Changing dynamics of the global markets
- Pressure points and fall out
- Impact on fund raising - how are investors reacting?
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| | Mr Manmohan Singh, Senior Economist at Sovereign Asset & Liability Management Division, Monetary & Capital Markets Division, IMF (USA)
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| THE GLOBAL INFLUENCE OF MENA PRIVATE EQUITY |
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10am | Private equity leaders’ roundtable: how are regional private equity funds influencing global investing?
- Is the MENA private equity market unique?
- Are international investors allocating into local funds?
- Are jug funds a thing of the past?
- Raising capital – the advantages of MENA liquidity and putting it to work
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| | Mr Michael P. Lee, Chief Executive Officer & Chairman of the Board, Ithmaar Bank (Bahrain) Mr Izzet Guney, Senior Executive Officer, Millennium Private Equity (UAE)
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10.30am | Morning refreshments and networking opportunity
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| PARTNERING WITH FAMILY BUSINESSES AND SOVEREIGN WEALTH FUNDS |
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11am | Investment opportunities for Middle East investors in the current market environment
- Summary of current trends in the market
- What have we learned and what is different this time?
- Where are the opportunities?
- How can a Middle-East based investor capture these opportunities?
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11.30am | Panel discussion: expanding opportunities in partnership with family businesses
- How important are family businesses?
- Mapping strategic targets - investments, mergers and acquisitions
- Family offices and future IPO strategies
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| | Mr Allan Sword, Managing Director, Head of Corporate Finance, ABC Investment Banking (Bahrain) Mr Rami Alturki, President, Khalid Ali Alturki & Sons (Alturki Group) (KSA)
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12pm | The global investors’ roundtable: are sovereign wealth funds the new LPs?
- The global credit crunch - what is the impact?
- Are SWFs really bailing out the global banking community?
- Is there too much money chasing too few good deals?
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| | Mr Manmohan Singh, Senior Economist at Sovereign Asset & Liability Management Division, Monetary & Capital Markets Division, IMF (USA)
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| LIQUIDITY AND RAISING CAPITAL IN UNCERTAIN TIMES
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“The total value of worldwide acquisitions by Middle Eastern buyers was in excess of $100 billion in 2007, more than three times greater than 2006”
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12.30pm | Buy-out panel discussion: big business buy outs – what’s in store for global and MENA markets?
- The liquidity void - will deals get cheaper?
- How can you do leverage buyouts without the leverage?
- The challenges of closing bigger deals
- Material adverse change (MAC) provisions
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| | Mr Robert Wages, Head of Private Equity, Abu Dhabi Investment Company (UAE)
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1pm | Lunch and networking opportunity
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| THE GROWTH AND RISE OF INFRASTRUCTURE INVESTING |
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2pm | The experience of an institutional investor with the asset class private equity
- The investor
- Starting point: identification of goals & definition of a strategy:
- How best to invest: direct, fund, or via fund of funds
- How to identify top funds and getting access to the top
- Funds – diversification – transparency
- Implementation and result
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2.30pm | Keynote address: the global drive in infrastructure investing
- Structures of infrastructure projects
- Regulatory issues
- Is long term local currency debt becoming more easily available?
- Falling risks and yields
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| | Mr Declan J. Duff, Vice President, Industries and a member of IFC’s Management Group, IFC (USA)
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3pm | Panel discussion: what do MENA and global infrastructure funds offer?
- How and where to invest? – putting money to work
- How a diverse portfolio is best – what sectors offer better returns?
- Can there ever be a secondary market for infrastructure funds?
- Overpriced deals and inflated expectations
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| | Mr Mark Lemmon, Chief Executive Officer, MENA Infrastructure Fund (UAE) Mr Amer Salah, Managing Partner, Capital Industries & Investments (UAE) Mr Vincent Gilles , Senior Investment Executive, Infrastructure Asset Management, Managing Director , UBS Infrastructure Fund (UK) Mr Declan J. Duff, Vice President, Industries and a member of IFC’s Management Group, IFC (USA)
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3.30pm | Business exchange networking session
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4pm | Afternoon refreshments and networking opportunity
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| REAL ESTATE INVESTING IN MENA AND GLOBAL MARKETS |
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4.30pm | Panel discussion: the impact of real estate on private equity funds
- New opportunities in the MENA and global markets
- Competition with US, Asian and European funds
- When to get in and when to get out
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| | Mr Rakesh Patnaik, Head of Real Estate Funds, Alternative Investments Group , Global Investment House (Kuwait) Mr Hossam Shobokshi , Head, Principal Finance I Middle East & North Africa , Standard Chartered Bank (UAE)
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| DEMAND DRIVEN OPPORTUNITY FOR ENERGY INVESTING |
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5pm | Panel discussion: private equity and investing in the energy sector
- The dynamics of the world’s energy demands
- What has the US and European market shown?
- Clean energy projects - where are the opportunities?
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| | Mr Rohan Singh, Senior Vice President, Energy Group, HSH Nordbank (New York)
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| INVESTORS AND THE SECONDARIES MARKET |
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5.30pm | Panel discussion: what role does the secondaries market have to offer?
- LPs' use of secondaries as a portfolio management tool
- Pricing and deal flow in the secondaries market
- What are investors looking for?
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6pm | Networking drinks reception
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7.30pm | Gala Dinner and the “2nd Annual Private Equity World MENA Awards”
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Day two: Wednesday 19th November 2008
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8.15am | Registration
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8.50am | Chairman’s opening remarks
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| | Mr Richard Dean, Columnist, Emirates Business 24/7 and presenter, Business Tonight - Dubai Eye (UAE)
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| THE FACTS ON THE GCC ECONOMIC BOOM |
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9.15am | Opening keynote address: the GCC economic boom and implications for private equity
- The boom: how deep and how long-lasting?
- The new petrodollar flows
- The challenges of high growth: inflation and pressure on the exchange rate
- What high capital flows, inflation, and exchange rates mean for private equity investment
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| | Mr Brad Bourland, Chief Economist and Head of Research, Jadwa Investment Company (KSA)
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| CO-INVESTING IN THE MENA REGION |
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9.45am | Understanding private equity investment risks and assuring transparency in investing
- Where to start - first top down then bottom up
- Funds, sectors, markets and opportunities
- What are todays best investment themes?
- Direct or co-investment, fund of funds - allocation issues
- How to ensure transparency
- Operational risks and reporting
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10.15am | The LPs and GPs panel discussion: co-investment opportunities in the MENA region
- Where are the attractive investment opportunities and who has the ability to execute them effectively?
- Globalisation - why do management teams seek global partners?
- How important is globalisation in such an expanding MENA market?
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| | Mr Nibil Triki, Managing Director, Head of Private Equity , Swicorp (UAE) Mr Mike R. Hughes, Managing Director - Head, Global Transaction Banking - MENA, Deutsche Bank
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| WHERE TO FOCUS IN THE MENA MARKETS |
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10.45am | Morning refreshments and networking opportunity
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11.30am | Panel discussion: family businesses and private equity investing in Saudi Arabia
- Who are the leading investors?
- What are the latest Saudi rules and regulations?
- What is the status of specific Saudi private equity funds?
- What are the attractive sectors for PE?
- How are family businesses operating?
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| | Mr Amitava Ghosal, Investment Manager, Strategic Investment Group, Global Investment House (Kuwait)
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12pm | Panel discussion: how is Qatar opening the market to investors?
- Who are the main players and what is their size, track record and strategies
- What are the attractive sectors for private equity?
- Deal flow, prices and returns to investors
- Opportunities and challenges to investing in private equity
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| | Mr Paul Field, Technology Transfer Manager, Qatar Science & Technology Park (Qatar)
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12.30pm | Panel discussion: a new focus for investors - North Africa?
- Key market and deal flow drivers
- Are the banks ready to play their part?
- How to raise capital
- Success stories and future prospects
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1pm | Lunch and networking opportunity
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| UNDERSTANDING RISK AND TRANSPARENCY IN INVESTING |
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2pm | Cross border business: mergers & acquisitions and key issues for Indian private equity transactions
- Indian regulatory framework for M&A and PE transactions
- Dedicated investment route for PE Funds
- Current deal terms for PE transactions
- Key issues
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2.30pm | Panel discussion: Indian private equity funds – raising the stakes
- India’s place in the global investment community
- Main players, their size, track record and strategies
- Deal flow, prices and returns to investors
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| | Mr Shahzaad Dalal, Vice Chairman & Managing Director, IL&FS Investment Managers Limited (India)
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| MENA VENTURE CAPITAL AND ANGEL INVESTING |
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3pm | China - MENA - The West: private equity golden triangle
- Strategic triangular positioning
- IPO trio
- China, world's largest domain private equity market
- Mega wave: to create PE super giants via triangular combination
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3.30pm | Afternoon refreshments and networking opportunity
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4pm | Panel discussion: how is MENA venture capital making its mark?
- How can investors “cherry pick” the VC market
- Market models: the US, European and Asian models
- VC returns: comparing returns to quoted markets
- Capital: Government vs. institutional vs. UHNW investors
- The 3 year outlook
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| INVESTMENT OPPORTUNITIES IN CHINA AND INDIA |
“A total of 386 private equity deals were struck in India in 2007. In 2004 there were 60 deals valued at $1.1 billion to $2.4 billion in 124 deals in 2005. From 2006 and to early 2007 this figure stood at $11.89 billion and growing fast”
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5pm | Business networking session and closing drinks
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6pm | Close of conference
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Post-conference workshop: Thursday 20 November 2008
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| THE IMPORTANCE OF DUE DILIGENCE |
Master class objectives
The master class is aimed at helping participants appreciate the importance of carrying out due diligence when undertaking a transaction. During the course of the workshop, participants will be taken through the different types of due diligence carried out and how the findings of each impact the transaction.
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8.30am | Registration and refreshments
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9.15am | Welcome and introduction to the workshop
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9.30am | Due diligence - why do it?
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10am | Types of due diligence
- Financial
- Legal
- Business
- Sector
- Deal
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11am | Morning tea and coffee
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11.20am | Integrity and reputational due diligence
- “Knowing” your partners
- Understanding reputational risk
- Establishing the integrity of the target and its principals
- Impact on transaction
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1pm | Lunch
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2pm | Competitor and market analysis due diligence
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2.30pm | Insurance due diligence
- Types
- Scoping
- Findings
- Impact on the transaction
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3.30pm | Afternoon tea and coffee
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4pm | Case studies & discussion
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5pm | Closing summary and remarks
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| ABOUT YOUR WORKSHOP LEADERS |
Kroll, the world’s leading risk consulting company, provides a broad range of investigative, intelligence, financial, security and technology services to help clients reduce risks, solve problems and capitalize on opportunities. With offices in more than 65 cities in over 33 countries, Kroll has a multidisciplinary corps of more than 4,800 employees. Kroll is a wholly-owned subsidiary of Marsh & McLennan Companies, Inc. (NYSE: MMC), the global professional services firm. Kroll’s sister companies include Marsh, Oliver Wyman and Mercer.
Tom Everett-Heath, Managing Director, Kroll (Dubai)
Based in Dubai, Tom Everett-Heath heads Kroll’s Gulf office, which was established in 2006. He joined Kroll's Middle East Practice as a Director in early 2005, having been Editor of the Middle East Economic Digest (MEED). Tom has worked on a number of M&A deals in the region, and international cross-border transactions for a broad spectrum of regional clients.
Dominic Moody, Senior Vice President, Marsh Private Equity and M&A Practice
Dominic Moody is a Senior Vice President of Marsh, serving as a Regional Practice Leader for its Private Equity and M&A Practice in the Middle East. Prior to moving to Dubai in 2007, Dominic had responsibility for the UK Regional Hub of dedicated staff in Manchester for nine years where they provided Risk and Insurance Due Diligence services to Private Equity Firms, Banks and Corporate Clients on over 500 transactions.
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