Pension Scheme Investment in Private Markets

Dates:

• 11 – 15 November 2024 - London (£2,650)
• 17 - 21 November 2025 - Dubai (£2,850)

Course Outline

In recent times, pension schemes have significantly increased allocations to alternative asset classes and, in particular, to private markets. The theoretical investment argument for these allocations is sound, given the high prices (and consequent low yields) of traditional public investment assets, the liquidity premium that pension schemes can harvest and the creation of new capital assets.

In contrast, equity and debt funding available to micro, small and medium-sized enterprises (MSME) is typically insufficient to support their expansion, in part due to the high regulatory capital requirements for banks providing credit facilities to MSME.

In addition, to analysing the potential portfolio diversification benefits of private market assets, the course will examine the principal types of private equity, ranging from venture capital through to growth equity, late stage/pre-IPO investments and buyouts as well as private debt markets, including portfolios of bank loans across different obligor types. The course will also cover the investment vehicles and fund structures used as conduits for pension scheme investment.

Course Objectives: 

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

Key Topics

• 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

This is week one of The Pension Scheme Investment Toolkit.