Day 1 | Day 2
Thursday, 27th June 2019
Registration and refreshments
Impact investment and ESG: Establishing best practices
ESG and impact investment have become priorities for many LPs – the former largely as an important aspect of manager due diligence and the latter as an investment strategy in its own right. Dedicated ESG professionals are being hired and their advice listened to at senior levels. Meanwhile, a cluster of global private equity firms have launched impact funds tailored to meet institutional investors’ requirements in terms of sustainability and attractive returns. In this session, a panel of experts will consider how GPs and LPs can establish strong responsible investment protocols.
- What progress are Japanese LPs making on sustainable investment?
- How are ESG criteria used to drive value creation?
- How is technology contributing to sustainable growth models?
- Is diversity the new ESG?
The Asia story: Getting regional exposure
What is the best way to access Asian private equity – a large pan-regional manager or a selection of middle-market single country players? The answer will vary based on an LP’s resources and experience in the region. But there is certainly appetite for broader and deeper Asian exposure as the industry matures. Fundraising, investment and exit records have been broken in recent years. The problem is that dry powder and valuations have hit new highs as well in certain markets. Our Asia experts offer insights into developing an approach that works.
- Which markets and sectors offer the best opportunities?
- Has Asia solved its exits problem?
- What are GPs of different sizes doing to differentiate themselves?
- Should late-stage tech deals be embraced or avoided?
Networking coffee break
Venture capital: Technology in abundance
Japanese venture capital is experiencing an upswing. More capital is entering the system, reflected in fundraising and investment data, and then last year the industry saw its biggest-ever exit as e-commerce platform Mercari went public. The secret sauce is identifying innovative start-ups that work in tandem with traditional businesses, ideally making a transformative impact through the implementation of technology. A cross-border expansion angle helps as well. The panellists will discuss the competitive dynamic in different segments of the market and offer their views on the outlook for innovation in Japan.
- What is being done to fill the growth stage funding gap?
- How is corporate venture capital impacting the market?
- Is a global expansion plan essential to becoming a unicorn?
- What kinds of technologies will define the next phase of Japanese VC?
Credit and debt: Finding the right strategy
The debt market comprises a range of strategies, each of which presents its own trade-offs involving terms, structures, and risk profiles. The asset class has generated a lot of interest among LPs seeking diversification within private markets, a way to mitigate the j-curve effect, and predictable, yield-based returns. Success is contingent on understanding the market dynamics – for example, how a change in the borrower landscape would impact lenders – in different geographies. In this session, our experts take apart the various strategies available and ask what each one means for investors.
- What are the most common misunderstandings about private debt?
- How are rising interest rates in the US impacting investment?
- To what extent are opportunities driven by banks withdrawing from certain areas?
- How do Asian credit strategies compare to those in the US and Europe?
Alternatives within alternatives: LPs consider their options
There are various ways to construct private equity portfolio reflecting the different aspects. Combine that with an appreciation of how investors differ in terms of risk appetite, expected future cash flow, and return expectations, and it’s possible to construct private equity portfolio to meet their needs. Secondary funds can be a good option for LPs and funds that acquire stakes in GPs is another. But in an increasingly complex world, how do LPs figure out what they want? A group of investors share their views on these strategies.
- How different is the role of secondaries depending on the stage of portfolio construction?
- How do you select secondary funds among many players?
- Why are many Japanese LPs recently considering GP stake investment?
- What is the typical risk factor of GP stake investment which is relatively new?
Close of conference