Keynote Panel: The Nordic outlook on long-term capital
LP appetite for longer-dated funds appears to be growing. Private market investors see the long-term capital model as an important adjunct to the more typical private equity investment horizon. Whilst longer duration might mean lower risk and lower return, we ask a panel of investors about the relative merits and the different approach required to establish a long-hold fund.
Case Study: Single asset fund restructuring and the evolution of the secondaries market
Thirteen years after PAI’s initial investment in the Swedish chemicals business, the GP transferred the last remaining asset in its PAI Europe IV portfolio to a new fund with fresh investment from Landmark Partners. This case study explores the strategic decisions made when a fund approaches the end of its lifespan with a single portfolio company remaining before an optimal exit occurs. This strategy of transferring the remaining into a new fund vehicle with the support of secondary capital is becoming more popular.
Panel: Direct lending on the rise in the Nordic region?
In 2018, European direct lending funds raised €25bn, according to Creditflux although the figures for the Nordic region is much lower. This is partly due to banks high level of activity in the Nordic market and their unwillingness to work with funds. However, progress is being made slowly as funds fight back with flexible debt solutions and senior financing options. Panellists will discuss the outlook and potential growth in this sector as well as the potential for collaboration between banks and funds.
Panel: Specialise or diversify?
In an effort to ease the administrative and reporting burden and reduce costs as well as the potential for less risk, many LPs have consolidated their relationships and are increasingly committing capital across asset classes in a smaller number of trusted funds. The largest Nordic fund to close in 2018, EQT’s buyout fund EQT VIII hit it’s €10.75bn hard cap with 70% of the commitments coming from investors in the previous fund. This panel will explore whether generalist funds are at a disadvantage against specialist managers when it comes to adapting to increasing industry disruption and whether it is better to specialise or diversify.
Panel: Private Equity Asset Allocation
In recent years, the Nordic region has maintained robust investment conditions and relatively little market uncertainty compared to the wider European and global markets. However, in the face of growing geopolitical and trade tensions, the potential for economic slowdown even in the strong Nordic environment seems more likely. Given private equity has outperformed the public markets and has offered more consistent performance, many investors are escalating their investment in this asset class. This panel of LPs will share their perspective on how investors can find the right allocation between direct, secondary and fund commitments and will explore the outlook for allocation over the next 5 years.
Panel: Digital transformation and dealing with technology disruption
The emergence and evolution of disruptive technologies such as artificial intelligence (AI), Big Data, blockchain and smart contracts are changing the global M&A landscape. These technologies have the potential to bring major benefits such as reduction of costs and improved efficiency to companies that are able to keep up. The need for digital transformation to remain competitive is reflected in the increased M&A activity to acquire new technology across a number of sectors including financial services and healthcare. This panel will explore how private equity firms can build internal competency surrounding new technology and what skills GPs need to support portfolio companies that are embarking on digitalisation initiatives.
Fireside Chat: The changing demographics of the workforce
As we enter what has been dubbed the Fourth Industrial revolution with rapidly increasing technological advancement and digitalisation, many industries are also experiencing a shift in the composition of their staff. By 2030, it is estimated that Millennials and Post-Millennials will make up 75% of the workforce and many jobs are increasingly being automated. This session will explore how investors can create value and stay ahead of the curve by understanding the effects this transition will have on people, businesses and the future of work.
Chair's closing remarks and networking drinks
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