The Private Equity

2016 Conference The Latest Developments & Trends and the Road Ahead

Europe’s leading topical and research based banking and corporate finance conferences

London, 7th Nov 2016

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Expert Speakers From

Private Equity industry has faced, and overcome, multiple obstacles in the past but Brexit poses a

completely new set of challenges as the outcome is largely in the hands of politicians. It is trite that

the regulatory landscape for PE has become more hostile of late and legislation such as the

Alternative Investment Directive has arguably done enormous damage to very little good effect.

Whether financial services in the UK can reap the best of access to the EU with lower regulatory

burdens remains to be seen. In any event, tax authorities around the globe are making concerted

efforts to target both thin cap rules and carried interest which will affect the UK whatever the

outcome of negotiations with the EU

On the investment front, value creation remains testing with entry multiples near record peaks

driven by a combination of benign macroeconomic factors, particularly low inflation and feeble

growth, together with industry factors in the shape of a wide availability of both equity and debt.

On the equity front, Private Equity remains highly competitive. Funds have record amounts of dry

powder at their disposal whilst well-capitalised corporates buyers prowl in the wings. Co-investing

remains a feature of the market being both a boon and a bane, but the last year has seen LPs

ramping up their own direct investment arms whilst Special Accounts are fast gaining traction.

Though debt markets continue to provide copious amounts of capital from traditional sources, this

has been matched by alternative lenders who can deploy significant tranches of debt, in some cases

over €500 million per deal, and on increasingly borrower-friendly terms. Whilst this does not augur

well when the economic cycle turns, it will provide opportunities for the turnaround segment of the

market.

Against this backdrop, deal origination and value creation remain key concerns. The answer to the

former is to develop a direct origination strategy although this takes time and money. As to the

latter, some industry experts note that a narrow focus on IRR, at the expense of other metrics of

value creation, can encourage shorter holding periods, thus boosting reinvestment risk in a testing

market.

This conference draws together the leading experts who will provide commentary and an insight into

the key issues and trends affecting the Private Equity industry and will give the attendees the

opportunity to ask questions to the expert presenters.

I look forward to welcoming you on the day of the conference.

Michael Dance Senior Consultant, Grant Thornt on

Welcoming note from the conference chairman

08:15-08:45 – Coffee & Registration

08:50 – Chairman’s Opening Remarks

Michael Dance – Senior Consultant, Grant Thornton UK LLP

09:00 – Private Equity Recent Trends and Developments – The Good, the

Bad, the Ugly

Gemma E. Farrell – Director, CVC Capital Partners

Overview – The Current Climate

Brexit – In, Out, Shake it All About

Increased Competition – More buyers, More capital

Valuations – Can They Go any Higher?

Where are the Hotspots – What is the Best Investment Approach?

Questions & Answers

09:35 – Deal Sourcing – The Magic Ingredients

Jacques Callaghan – Senior Managing Director, Macquarie Capital

The importance of “Brand”, “Reputation” and “Differentiation” Is market behaviour driving process and pricing?

Different approaches to origination

Go with what you know – Sector focus boosts returns

Direct origination – It’s difficult but worth it Leveraging In-house relationships

Developing specialist origination, sector-focussed teams

Hire the right people with persistence, judgement and personality

Utilising effectively Senior Advisors, Chairmen and Consultants

Targeted cold calling

Different types of deal sources

Intermediary relationships are key

Questions & Answers

10:10 – Mid-Market Lending

Lord Leigh of Hurley – Senior Partner, Cavendish Corporate Finance

Alistair Hay – Partner - Debt Advisory, Cavendish Corporate Finance

How have funding options changed over the last year?

Impact of larger syndicated loans

Have bond markets continued to provide a viable option?

Direct lenders – Friend or foe?

Non-sponsored Corporate’s – Have they been left on the side lines?

Questions & Answers

10:45 – Morning Coffee & Networking Opportunity

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11:05 – Distressed / Special Situations – Riding the credit cycle…uphill or downhill?

Richard Heis – Partner and Global Head of Restructuring, KPMG

Look back in anger – How has the market fared in the last year

How has Brexit affected sentiment and what does the future hold

Where are the major points of friction in a post Brexit world (CoMi, Schemes)

Where sectors will offer the best opportunities in the year ahead: Oil & Gas, Minerals,

Retail, Commodities, Mining & Minerals, Steel?

What about the maturity wall?

Will the current high levels of gearing and borrower-friendly terms end in tears

Investment opportunities on the horizon

Questions & Answers

11:40 – European Leveraged Debt Market – All at sea

Paolo Grassi – Managing Director, HY & Leveraged Loan Origination, BNP

Paribas

Leveraged Markets Snapshot – The age of maturity?

Key Dynamics – HY Bonds vs Loans

Leveraged Debt Instruments – What’s in the toolkit?

Market Liquidity – Focus on Bank and Fund Appetite

Deal Supply – Any light beyond the current deal shortage?

HY Bond & Loan Documentation – And the Winner Is…

Takeaways and Looking Forward – How will Brexit affect the market landscape?

Questions & Answers

12:15 – Infrastructure & Renewables

Ram Kumar – Director, Energy & Infrastructure, KKR

The investment landscape today: the latest developments and challenges for the G20

Global Infrastructure Hub

What are the priorities to address?

Developed market vs emerging markets

New approaches to lift the quality of public and private investment in

infrastructure

Asset recycling via Privatisations – Which countries are most conducive to private

Infra-investment?

Which sectors offer the best opportunities for value creation?

What about renewables:

A road to nowhere when the subsidies stop? Costs vs Gain

The climate for investment

What about the Government – Regulatory landscape

The future for renewables

Questions & Answers

12:50 – Lunch & Networking Opportunity

14:00 – Private Equity Fundraising Environment – Feast or Famine?

Michael Halford – Head of Investment Funds, King & Wood Mallesons

The balance of power between LPs and GPs – Who has the upper hand?

Management fees – During and after the investment period, rebates of deal-related

fees against management fees

Performance fees – Basis for distribution of fund proceeds, carried interest, hurdle

rate (preferred return), GP catch-up rate

Governance issues – Key man, divorce, diversification, fund extension

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Co-Investments – Benefits of co-investing, GPs offering co-investment rights,

management fees, carried interest

Special Accounts – Current developments, carry, are they here to stay?

Impact of Brexit on fundraising

Questions & Answers

14:35 – Private Equity Trends and Themes in 2016 & Outlook for 2017

Anna K. Skoglund – Managing Director, Goldman Sachs

Current Private Equity Themes

Key Areas of Activity

Trends Supporting Sponsor M&A

Major deals – closed and in progress

Who is selling and who is buying?

Where in the world? US, Europe and Asia

Ways to Participate in the Current Market Environment

Deploying Capital Today

Innovative Financing and Transaction Structures

Case Studie

Changes in the Global Private Equity Landscape

Evolution of the Industry Players

Emergence of Non-traditional Buyers

What are the driving factors in 2017?

Questions & Answers

15:10 – Afternoon Tea & Networking Opportunity

15:30 – Review of the direct and alternative lending funding landscape for

Private Equity

Fenton Burgin – Head of UK Debt Advisory, Deloitte LLP

Overview of the direct lending landscape: funds vs banks…and the winner is?

Spectrum of funding options

Direct lending for mid-caps

Size doesn’t matter – How big and how small can direct lenders stretch?

Direct lending strategies – Take and hold vs sell down: will we follow the US

market in developing a clubbed market?

Direct lending to non-PE corporates – Can funds gain traction & achieve

acceptable returns?

Questions & Answers

16:05 – The Trojan Horse – Co-investment, Direct Investment and Separate

Accounts

Claudio Siniscalco – Managing Director & Global Co-Head of Co-investments,

Deutsche Bank Private Equity - Deutsche Asset Management

Co-investment – What are the main challenges for LPs?

Recruitment, lack of skills & resources

Inertia/Inability to meet tight deadlines

Direct Investment

Will it ever replace Private Equity commitments?

Can the LPs recruit and retain the right talent? Show me the money

Can they handle the heat in the kitchen when the going gets tough?

Separate Accounts

Is the rapid growth sustainable?

Are these arrangements a conflict of interest?

How can the parties mitigate potential conflicts or problems?

8:50-17:30

London

£595 + VAT (£714)

Discounts available for multiple participants:

3-4 participants: 15% discount per participant

5-6 participants: 20% discount per participant

7-8 participants: 25% discount per participant

9 or more participants: 30% discount per participant

Special Discounted Rates for Sponsors

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Participants will have the opportunity to ask questions and raise issues with the expert

presenters.

16:40 – The Tax and Regulatory Landscape for Private Equity

Lisa Cawley – Partner, Kirkland and Ellis International (UK)

Jonathan Kandel – Partner, Kirkland and Ellis International (UK)

How will Brexit affect the regulatory landscape

What about thin capitalisation

Group tax developments

Withholding and other taxes

Never mind the carry – Clouds on the horizon

Impact of regulation

AIFMD – is there any good news? How are things working in practice?

Transparency and Disclosure

Questions & Answers

17:15 – Chairman’s closing remarks

Michael Dance – Senior Consultant, Grant Thornton UK LLP

17:30 – End of Conference

8:50-17:30

London

£595 + VAT (£714)

Discounts available for multiple participants:

3-4 participants: 15% discount per participant

5-6 participants: 20% discount per participant

7-8 participants: 25% discount per participant

9 or more participants: 30% discount per participant

Special Discounted Rates for Sponsors