Programme Day 3
Friday, 2nd March 2018
Succession the right way
LPs in Australia are concerned about the long-term team stability of the GPs in their PE portfolio. Some of them have attempted to address succession issues, but with mixed results. While others do not see it as an issue for their fund despite questions from investors. So how do you find the right balance, will founders want to relinquish power to retain key staff, and what does good succession look like? In this session, a panel of GPs and LPs will debate the following topics:
- Who owns the track record?
- How concerned are LPs that GPs are not prepared?
- What models exist, and what have we seen from GPs across the globe?
- What is the outlook for succession in Australia given the maturity of funds and make-up of senior management?
Investing in disruption: How the Future Fund utilises private equity and venture capital globally to access the next generation of opportunities
Networking coffee break
Asia highlights: Where, why, and how for LPs
The onus is on GPs to prove they have the capability to prosper now that beta and bull markets are a thing of the past. As the asset class continues to mature in the region, GPs are evolving to add to their offerings and institutionalise their firm to attract a wider LP base. Our Asian experts will share their thoughts on delivering performance in the current environment and how Australian LPs should commit to the region to ensure they have a diversified portfolio.
- How can Asian managers capitalise on the desire from LPs to look outside of the mega global players for regional exposure?
- Are spin-out funds with niche strategies and terms garnering interest?
- What strategies are attracting LPs to funds, and where have we seen the best returns?
- How can new LPs looking at Asia create a balanced portfolio across the region?
New wave of LPs for alternatives
The growth in variety in the LP community has long been touted as the new source of capital for private equity, however GPs have struggled to make a breakthrough. From family offices, HNWI’s, and corporate investors, the potential for GPs to broaden their LP base of both domestic and international LPs is present. However, these groups are characterised by a high level of patriarchal involvement, minimal reliance on formal programmes run by professionals, and a preference for direct investment. Our panel looks at how PE can work with these groups and how interest in alternatives can be translated into financial commitments.
- What type of non-traditional LPs have made commitments to private equity?
- Are they able to react faster to opportunities than other LPs?
- To what extent are they competitors for deals rather than partners?
- How do you source new LPs and present the PE opportunity?
LPs’ views on Australasia and beyond
The world offers a myriad of strategies, fund types, specialties, and terms. Do you commit big to a handful of mega funds, or seek out the niche country only managers with deep rooted connections and expertise? Alternatively, do you try a combination of both, and if so, which geographies, what role should Australia play, and how do you strive to get the balance right?
- Which are the most interesting sectors, regions, and strategies?
- Have LPs adjusted their expectations for returns from Asia?
- How you do you execute direct investments whilst managing fund relationships?
- Is manager consolidation the way of the future?
Lunch and Close of Forum