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Overview
This conference brings together leading private markets allocators, consultants and fund managers who focus on private equity, private credit, growth equity, and venture capital to learn how they select winners, add value and deliver returns. Our speakers will discuss their experiences with investment in private companies and funds, the management of their portfolios, fundraising efforts, and their future expectations.
Private equity and venture capital returns have often outperformed public market indices, though public markets have outperformed more recently, according to Cambridge Associates.
Over the past five years, US private equity generated 13.6% IRR and US venture capital generated 14.1% IRR, slightly less than the 14.6% average annual compounded return for the S&P 500. Over the past 25 years, US private equity generated 13.5% IRR and US venture capital generated 27.3% IRR, far outpacing the 9.6% average annual compounded return for the S&P 500.
Manager selection is crucial as private investment returns vary widely. According to Cambridge Associates research, a top-quartile private equity manager is expected to outperform a median private equity manager by 6.4% per year over ten years, a 4-5X greater difference than for public equity managers. Private Equity Private equity (PE) dealmakers put $538 billion to work across more than 4,000 deals in 2017. The median acquisition multiple of 10.5X EV/EBITDA remained unchanged from 2016: however, PE dealmakers used higher levels of leverage in 2017, with the median debt/EBITDA multiple climbing to 5.7X, the highest level recorded by Pitchbook. Private equity firms realized $185 billion in nearly 1100 exits during 2017, an 11% YOY decline.
The downward trend in PE exits is largely driven by a strong pullback in strategic activity. Private equity dry powder has continued to build as a result of the record fundraising environment over the last few years. PE firms closed on $233 billion across 247 funds during 2017, and a record $648 billion has been raised over the past three years. Capital continues to accrue to fewer yet larger PE funds, and the median time between funds has fallen to less than 3 years.
The venture capital (VC) industry has evolved as VC-backed companies stay private longer and command larger deal sizes. With more capital being deployed at higher valuations, our venture capitalist speakers will address a key question: can outperformance be sustained?
Record unicorn financings drove 2017 total venture capital investments to $84 billion, the largest amount since the early 2000s, according to Pitchbook and the National Venture Capital Association. Unicorns – with valuations of $1 billion or more – raised $19 billion in 2017, representing nearly one-quarter of total VC dollars invested though less than 1% of deal volume.
Venture capital investments outpaced exits again in 2017. While $84 billion was invested across more than 8,000 venture-backed companies, the number of VC exits continued to decline to 769 liquidity events though total VC exit value remained relatively flat at $51 billion in 2017. The median time to exit in the venture market has reached a record 5.6 years. Private equity investors have also provided liquidity to VC investors, with a record-setting 146 private equity buyouts of venture-backed companies in 2017. Venture capital funds have raised $142 billion in committed capital over the past four years.
Sources: Cambridge Associates; National Venture Capital Association; Pitchbook
Agenda
11:30 AM | REGISTRATION & LUNCH
12:10 PM | WELCOMING
Daniel Dagen, CFA, Chief Executive Officer, CFA Society New York
12:15 PM | OPENING REMARKS
Kris Thiessen, CFA, CAIA, EA, Co-Chair, Alternative Investments Group and Board Member, CFA Society New York
12:20 PM | PRIVATE MARKETS REVIEW PRESENTATION
Bryce Klempner, Partner, McKinsey
Brian Vickery, Associate Partner, Mckinsey
12:50 PM | PRIVATE EQUITY PANEL
Moderator
Bryce Klempner, Partner, McKinsey
Panelists
Chinh Chu, Founder and Senior Managing Director, CC Capital
Michael Dymond, Senior Portfolio Manager, Private Equity, APG Asset Management
Alison Killilea, Managing Director, W Capital Partners
Yup Kim, Senior Portfolio Manager, Alaska Permanent Fund Corporation
Christopher Sand, Director, Ardian European Buyout
1:50 PM | COFFEE BREAK
2:05 PM | PRIVATE CREDIT PORTFOLIO CONSTRUCTION PRESENTATION
Introduction: Alvin Butler, CFA, Vice Chair, Alternative Investments Group, CFA Society New York
Sylvia Owens, Global Private Credit Strategist, Aksia
2:25 PM | PRIVATE CREDIT PANEL
Moderator
Sylvia Owens, Global Private Credit Strategist, Aksia
Panelists
Tim Grell, Partner & Americas CEO, Tikehau Capital
Tom Howell, CFA, Managing Director, Proterra Investment Partners
Olga Kosters, CFA, Director, StepStone Group
Michael Weinmann, Partner, CRG
Yelin Wen, CFA, Senior Investment Analyst, Robert Wood Johnson Foundation
3:25 PM | STATE OF THE MARKETS: VIEWS ON VENTURE INVESTING IN THE GLOBAL INNOVATION ECONOMY
Introduction: Todd Eklund, CFA, CAIA, Co-Chair, Alternative Investments Group, CFA Society New York
Jack Gaziano, Managing Director, Silicon Valley Bank
3:45 PM | COFFEE BREAK
4:00 PM | GROWTH EQUITY INTERVIEW
Introduction: Carole Crawford, CFA, Chair, Fintech Group and Board Member, CFA Society New York
Brian Price, Producer, Cheddar (Interviewer)
William Janeway, Ph.D., Special Limited Partner, Warburg Pincus
4:40 PM | VENTURE CAPITAL & GROWTH EQUITY PANEL
Introduction: Nithin Johnson, Executive Director, Tikehau Capital
Moderator
Sheila Ryan, Partner, Cambridge Associates
Panelists
Francesco Draetta, CFA, FRM, CAIA, Principal, Omega Funds
John Frankel, Founding Partner, ff Venture Capital
Merritt Hummer, CFA, Principal, Bain Capital Ventures
Novisi Nirschl, Director, Investments, Memorial Sloan Kettering Cancer Center
Deborah Zajac, Director, Touchdown Ventures
5:40 PM | PRIVATE MARKETS ASSET ALLOCATION PRESENTATION
Sheila Ryan, Partner, Cambridge Associates
6:05 PM | CLOSING REMARKS
Kris Thiessen, CFA, CAIA, EA, Co-Chair, Alternative Investments Group and Board Member, CFA Society New York
REFRESHMENTS & NETWORKING
Additional Details
Learning Outcomes
- How private markets fund managers make investment decisions and choose which companies to back
- How private markets fund managers help create value in their portfolio companies
- How institutional LPs and consultants make allocation decisions and select private markets fund managers
- How private markets fund managers develop syndicates and collaborate with other investors
- The role of private equity, private credit, growth equity, and venture capital investments in institutional portfolios