Wednesday, 6 March 2019
Limited partners' session (invitation only)
This session offers participants the opportunity to hear first-hand about PE investing from their peers, many of whom have decades of experience investing in global markets and working with GPs, in a confidential setting. Attendance is open to LPs with current commitments in the alternatives space as well as to those currently not allocating but who wish to find out more about the industry. The session includes presentations, insightful case studies, and practical discussions.
- Which sectors and geographies are most interesting to LPs?
- What are the merits of multi-product GPs versus specialist GPs?
- How are LPs building in-house teams that work alongside GPs?
- How effectively can Australian LPs source and execute co-investment?
- Is the fund-of-funds model evolving to meet the needs of Australian LPs?
- How are investment teams justifying the PE model to their trustees?
Registration and networking coffee break
Opening keynote address
Global outlook: Alternatives in 2019 and beyond
Uncertainty clouds the global economy, from trade tensions to fears of an impending valuation correction. Concerns are accentuated by the amount of capital flowing into private markets, which has given rise to ever larger fund sizes, record levels of dry powder, and escalating valuations. In these conditions, investors must be thoughtful as to the potential scenarios for existing and future investments, and able to respond decisively to new developments. Our panel takes the temperature of the market.
- What are the most significant macroeconomic threats?
- How will the investment landscape change over the next five years?
- What can GPs do to minimize the potential downside?
- Which segments offer the best value?
Australasia: The new dynamics effecting the market
Supply of capital is strong, and despite several changes in the GP universe and fund strategies, the size of the market is relatively unchanged, with a good spread of managers. It is fair to say that for GPs, flexibility is key when working with LPs, as they look for managers to be more ccreative with investment solutions, for example more co-investment opportunities to lower fees and as a return enhancer. The next phase will illustrate the ability of the industry and strategy – whether buy and build or platform investments – will need to deliver at exit. Our panel of investors assess the current state of affairs.
- What strategies are GPs employing for investing at the various segments of the market?
- Will we see the IPO market open again for private equity exits?
- Are more secondary deals expected in the current climate?
- How are co-investment opportunities being structured and provided by GPs?
LPs of the future: The Superannuation industry in 2029
How will Australia’s superannuation funds be accessing alternatives a decade from now? Fee concerns have dominated the debate among institutional investors as to how they get exposure to private market assets. Given the expected consolidation of the superannuation industry, it remains to be seen how this debate evolves. Some groups are already building up internal teams and becoming more active direct investors, while others are not even contemplating such strategies. Our experts examine the likely outcomes.
- What are the major obstacles to creating internal PE teams?
- Will LPs become less dependent on external managers?
- How are advisory relationships already evolving?
- To what extent could superannuation funds emulate the Canadian model?
Data presentation: PE performance update – How Australasia fares on the global stage
Networking coffee break
Regional exit options: The rise of the Asian buyer
Asian GPs are increasingly looking towards Australia as a fertile market for strategic acquisitions. As buyers of private equity portfolio companies, this has created an exit opportunity, and we have recently seen several examples of GPs from across the region acquiring assets, offering them an avenue for outbound growth, and providing liquidity to their domestic private equity owner. As capital controls in China take hold, these types of buyers are better qualified to create a stable market. Our panellists offer their insights.
- What strategies and examples of deals show best practice for executing deals with Asian counterparts?
- What sectors are best suited for Asian expansion?
- Is Australia becoming a destination of choice on the regional map for other Asian GPs looking to make deals?
- How are partners being sourced, and are GPs proactively looking for Asian buyers?
Internal innovation: How GPs are evolving to stay competitive
Private equity strategies develop over time in response to shifts in market dynamics, the emergence of new investment themes, and the evolving needs of portfolio companies. There is no single optimal solution. Changing fund size and structure, recruiting internal talent to ease reliance on external service providers, internal restructuring to address certain sectors more effectively – there are a multitude of ways to try and stay ahead of the game. Our panel discusses industry best practices.
- How are GPs building up sector and functional expertise?
- In what ways has technology been a game-changer?
- How are approaches to mid-office and back-office activities changing?
- To what extent is the private equity model becoming more flexible?
Close of day 1 conference
Gala cocktail reception