Risk management is becoming increasingly critical for professionals in private equity as an asset class. With exit visibility low and investors stressing on capital protection, effective risk management for portfolio firms and for new investments has taken centre stage in investment decisions.
Still tentative economic recovery and spectre of new regulations will only step up the emphasis on managing risk for private equity fund managers, going forward.
In this regard VCCircle Training is organising a one day workshop to help delegates identify, measure and mitigate all types of risk concerned with private equity investments. The program will offer practical tools coupled with contemporary knowledge modules and anecdotal experience of the experts.
Well-respected experts in their fields will cover various topics in the workshop, providing delegates with multiple perspectives and immeasurable and highly practical experience in risk management. The attendees will be able to take away precise best practises and scientific monitoring knowhow.
Precisely understanding how the downside affects your business should make your organisation’s upside all the more rewarding.
Why You Should Attend:
Understanding General partner-specific risks
Measuring and monitoring risks at fund level and portfolio company level
Insights into emerging market risks
The limited partners perspective of risk
Benchmarking private equity investments
Regulatory treatment of private equity funds
Balance risk between GPs and LPs
Understand the impact of new regulatory requirements
Thorough study of Enterprise Risk Management
Receive practical lessons on how to build and run a risk management function
Learning different exit strategies.
Who should attend:
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Session 1 : Risk Management & Private Equity
An introduction to risk and risk management
Risk management as a source of competitive advantage
De-layering risks (GP/LP perspectives)
Regulation, Legal, Liquidity, ESG considerations in private equity risk management
Fund of Fund Risk Management
Group Activity – Delegates will be divided in two groups
Session 2 : Risk Management & Controls– Fund Level
Macro risk
- Country – geopolitical risk
- Economic environment – currency, inflation, growth etc
- Regulatory – volatility or uncertainty
Transaction related risks
- Company – credit risk
- Industry
- Investor
- Transaction Structure
- Cross border risk
Portfolio management
- Traffic Signal approach
- Liquidity, profitability and other operating metrics
- Financial and Non-Financial Covenants
- Exit event likelihood – preparation
- Handling the problem children/restructures
Operating risk
- Corporate governance standards
- Internal audit
- External audit
- Compliance and regulatory reporting
Session 3 : Risk Management – Portfolio Company Level
Scope and definition
Company Growth models- EBIDTA, Organic, Portfolio, Products and Acquisitions
Setting goals and strategy to overcome risks
Pre-transaction analysis & due diligence
Regulatory, Compliance and administrative factors
Strategy to overcome and using tools
Primary and secondary market scenario- evaluating robust an weak market situationA risk management ‘health check’ for portfolio companies
Session 4 : Enterprise Risk Management – Company Level
Scope and definition
Setting goals and strategy to overcome risks
How to determine risk profile of a company from ERM perspective?
ERM and Corporate governance
Key considerations from recent Companies Act changes for nominee directors/companies
Adding value through effective risk management
Centralization v/s decentralization of Authority
MIS and periodic financial reporting
Creating the right infrastructure for growth –people (Linking performance and incentives), policies & processes, systems& data
Linking audits to risk profile and risk management of company
Session 5 : Exit strategies, readiness and valuation- Risk and Opportunities
Strategic review of exit options, seeking M&A or listing options and preparing for exit, facing due diligence from buyers etc
Exit influencers of markets, strategic, LBO, Secondary, Buyback
Preparing investee companies for exit
Exit perils – Partial or Complete, Timing, Valuation, Exchange rates, administrative and policy guidelines,
Final discussion & questions
VCC Events opens up the avenues for participation. Join hands to be a part of India’s largest gathering of alternative investments leaders, industry stakeholders and Asia’s influential limited partners, general partners and marquee advisors. Your chance to actively participate and augment yourself as thought leaders.
Taj President, Mumbai
Vivanta by Taj – President
90, GD Somani Road, Cuffe Parade
Mumbai -400005
Drop us a line and we will call you.
