Unlike most debt instruments, many loans dont decline in value as interest Why is it attractive and developing? For example, European banks outstanding corporate loan volumes were relatively stagnant in the years leading up to 2020. It aims to bridge the knowledge gap and provide interested LPs with a better understanding of the business and industry ecosystem as well as new models being developed. THL invests in middle market growth companies exclusively within selected Identified Sector Opportunities (ISOs) in three industry groups: Financial Technology & Services, Healthcare, and Technology & Business Solutions. that would make it the worlds fifth-largest economy.1 Middle-market companies also play a significant role in Europe, representing around a third of private-sector employment in the four largest economies.2 Loans The IPCC reports keep insisting on the climate emergency: the house is burning". How resilient will the mid-market be to macro headwinds? The ICE Benchmark Administration will stop publishing LIBOR for most settings after December 31, 2021. But will that always be the case? Remaking the world starts in the workplace. and other sweeteners more frequently than other credit instruments, providing debt investors with the ability to enjoy equity upside potential along with downside protection. Perfesco will develop this approach with the example of a project implemented at Toyota, which will bring its live testimony on cooperation and CO2 savings. Additionally, an allocation to direct lending enables 5 Refinitivs estimate is based on the middle-market loan amounts maturing through 2026. How a sharp focus on pricing strategy in portfolio companies can be implemented to deliver through to EBITDA and create a point of competitive differentiation. During the same period, European direct lending assets under management skyrocketed from almost nothing in 2009 to over Those funds include hard money loans, distressed debt, and mezzanine loans. For large investors domiciled in countries with favorable tax treaties, such as Canada, Japan, the United Kingdom and many EU countries, this tax concern may be addressed with a bespoke fund-of-one solution. Head of Performing Credit and Portfolio Manager, Managing Director and Co-Portfolio Manager, Managing Director and Credit Product Specialist, Vice President and Credit Product Specialist, Oaktree Diversified Income Fund Inc. (ODIDX), Oaktree Emerging Markets Equity Fund (OEQIX). $150 billion in 2020 (see Figure 2). This conversation will explore how investment teams perform when physically located in-country versus out of regional offices. Lower risk than private equity, since debt sits higher than equity in the capital structure. This fireside chat will go deeper into the investment process from an LP and GP about the spectrum between PE and core infrastructure. and (3) our longstanding relationships help us gauge how sponsors will act during the investments life cycle, including in a possible restructuring. Monaco is a city-state that derives a unique advantage from its size. The GFC accelerated this consolidation trend, and the Dodd-Frank Wall Street Reform and Consumer Protection Act, passed in 2010, introduced enhanced rules and regulatory requirements that intensified underwriting standards and mandated that banks hold How are major tech investors navigating the storm? The acceleration has been powered by technology as AI helps to play its part in the maturity of the market. Additionally, the loan contracts normally include both incurrence covenants, In 2021, the 750 billion spent worldwide on clean energy and energy efficiency is still not enough. Direct lenders' dry powder stands at an estimated $210 billion as of the beginning of August, according to Preqin. Federal regulations restrict BDCs potential investment opportunities. This area , Beyond management package - Sharing value with all employees, The Automation Investment Opportunity LP-Only, Closed-Door Session (invitation only), Finding your European and French Total Addressable Asset Pool (TAAP), Raising capital in Europe - Workshop for international GPs, Private markets democratisation for wealth through retail access, Italian Institution Investors Meeting (invitation only), Europe After a Succession of Crises - The challenges and opportunities ahead (1/2) , Europe After a Succession of Crises - The challenges and opportunities ahead (2/2) , The Top 5 Trends to Follow in Private Markets Right Now , Pan-European Firms and Keeping Their Ear to the Ground , Latest Developments in Buy and Build Strategies , When, How and Why European GPs Go Global , What Gives Sector Funds a Distinctive Edge , France (1/2) - Investing in the French Market , Why Now is a Good Time for Private Debt Markets . What are the warning signs investors should be aware of? Among private market issuers for which we have credit estimates, more than 90% are private equity sponsor-backed, and these entities tend to be highly leveraged. 17:30 / 18:00 - Conference Room #2 (Level 0 - Croisette). That marks a sharp rise from five years ago, when European-based funds raised $111.24bn at an average fund size of $430m. Globally, in the year to date, private equity funds have raised $714bn, up from $657bn in 2016, according to data from Preqin. Why Nordic? Predictable and contractual returns based on interest rate charged. 17:15 Panel / How to preserve, generate and optimise value The debate around PE outperformance continues to draw attention. Why demographics are putting today's workforce under pressure. Strategies with lower risk tend to yield lower returns than those with higher risk. Growing concerns have emerged as risk areas for the enterprise, and impending regulations have concretized the threat for many executives. Private equity performance rebounded quickly with record levels of dealmaking. The global value of art and collectables is ~$1.7T, making it one of the largest unsecuritized private asset classes. Direct lending may generate attractive returns with less downside risk and mark-to-market volatility than more liquid credit strategies like broadly syndicated loans. 6 Preqin. How do rising stars and the leaders of tomorrow take a culture and make it their own? The Future of Alternatives in 2027 Persistency in Alternative Asset Strategies: Private Equity Buyouts Fundraising from the Middle East: A guide to raising capital Alternative Assets in North America Preqin Insights+ Complex Sectors: Successful investment in sectors with highly technical products and assets, such as life sciences and software, requires specialized expertise. In the past years, private equity has made significant strides in gender diversity especially in junior-level roles. risk with the possibility of additional return the so-called illiquidity premium. Less Liquidity: Lenders cant move in and out of these investments as easily as investors can normally buy and sell broadly syndicated loans (BSLs) and high yield bonds; however, lenders are typically compensated for this with high competition and record levels of dry powder, RoI is under pressure making value creation even more important. Virgin IslandsUgandaUkraineUndefinedUnited Arab EmiratesUnited KingdomUnited Republic Of TanzaniaUnited StatesUnited States Minor Outlying IslandsUruguayUzbekistanVanuatuVatican City StateVenezuelaVietnamWallis and FutunaWestern SaharaYemenZambiaZimbabweland Islands. At that time, regional U.S. banks that serviced middle-market companies began consolidating; the resulting larger banks focused less on lending to small- and medium-sized companies and more on fee-based business lines As the market cools, we consider the lasting effects of the past couple of years on PE: Why the pursuit of growth at all costs in tech investing has now changed. Your access to, and use of, this website will be subject to the applicable Terms of Use, Privacy Policy and Use of Cookies. An introduction to a fundamentally new approach to private equity with purpose. BDCs are characterized by a unique set of requirements: Seventy percent of the BDCs total assets must be invested in eligible portfolio companies (i.e., U.S. private businesses or U.S. public companies with a market capitalization under $250 million). GPInvestorAdvisorBusiness ServiceOther, Country (required) What to watch - can you predict an asset that is ripe for a GP-led restructuring? The investor receives scheduled interest payments from the underlying loans. What is Private Debt? The US boasts significantly more sector specialist funds than Europe. Preqin estimates that there is 2.44 trillion in dry powder available for leveraged buyouts, real estate, and other projects (Galleher, 2020). Contact us with any questions or concerns or locate your nearest office. for more details. This session considers the emerging trend for GPs to gain fresh capital and asks, when are they ready to sell a stake in their businesses? Appetite for the asset class in an inflationary environment. The concluding meetup at IPEM will bring together heads of communications and marketing for networking and discussion on the latest trends in building brands in private capital. 14:00: Welcome and panel - what is really at stake when it comes to impact investing for GPs and LPs? Now that ESG is mainstream, every infrastructure fund is meeting a minimum threshold required on paper to manage LP capital. Future innovation - where will things go next? Economic Uncertainty Leads to a Heightened Focus on Portfolio Company Management Teams. Participate to dynamic and easy-going events inside and outside the Palais des Festivals with the serenity of the French Riviera and the turquoise Mediterranean to energize the mind (and soul) as background. Read the latest reports and market-level statistics covering fundraising, deals & exits, dry powder, AUM, and investors, Access alternative asset performance benchmarks, Download slide decks from our conference presentations, Preqin Anywhere (API, Data Feeds & Plugins), LP & Capital Allocator Solutions (Colmore), Placement Agents and Third-Party Marketers, Consulting and Corporate Advisory Services, Persistency in Alternative Asset Strategies: Private Equity Buyouts, Fundraising from the Middle East: A guide to raising capital, Service Providers in Alternative Assets Webinar. Whilst these definitions are broad - from energy transition to eco-packaging - how might competition for these opportunities drive valuations? Private debt, or private credit, it is the provision of debt finance to companies from funds, rather than banks, bank-led syndicates, or public markets. Additionally, BDC tax reporting is relatively simple and similar to the process used when investing in mutual funds (i.e., a 1099 form is submitted). Attractive risk-adjusted returns in a low interest rate environment. equity contribution reported for large-company LBOs. investors to gain exposure to private-equity-sponsored deals without assuming the same level of risk as equity investors. According to Preqin, debt financing in the private markets soared from less than $500 million a decade ago to $1.2 trillion by the end of 2021. In addition to U.S. taxes, investors may also be concerned about local withholding taxes on interest from the borrowing companys jurisdiction. Non-core infrastructure is the outcome of greater capital flows into the asset class and a competitive brownfield landscape. This determines how, and in what order, capital is repaid in the event of bankruptcy. How resilient are nascent strategies in an inflationary environment? This determines how, and in what order, capital is repaid in the event of bankruptcy. Even small amounts of What does the insatiable ambition of GPs to grow assets mean for investors? For LPs seeking to actively adjust portfolios to sustain returns, it is critical tounderstand where the pockets of value lie across the spectrum of private capital strategies now on offer. document.getElementById( "ak_js_6" ).setAttribute( "value", ( new Date() ).getTime() ); Fill-in the information below to receive the list of IPEM 2021 first attendes. In total we received 357 responses from PE and VC investors globally. This variance adds complexity for GPs seeking to access impact capital and understand LP requirements in this arena. Key regional variations between US and Europe. From the different sources of debt to the capital structure and strategies, you now know the ways investors can allocate to private debt, and why they choose to do so. Interactive experts discussion | Management Package Update: Latest trends on incentives, individual tax aspects, investment structuring and governance. Please see the BDC overview for more details. And has what is attractive changed since February 2022? In an environment of increasing multiples and competition for platform assets, buy and build has been a critical value creation tool for GPs to build scale, synergy and geographic expansion. How do they build a network to source fund investments? Going forward, what are the top lines in the Chinese and European capital markets and what are the investment opportunities in the third-world countries' markets? What Might the Post-Pandemic-Era Opportunity Set Look Like? Duration is also shortened because loans usually feature all-cash coupons, while some high yield bonds include payment-in-kind, 12:15 / 12:45 - Conference Room #1 (Level 0 - Croisette), 12:15 / 13:00 - Conference Room #2 (Level 0 - Croisette). Oaktree has well-established regional investment platforms that can help clients mitigate the impact of taxes on returns. The materials, including the information contained herein, may not be copied, reproduced, republished, posted, transmitted, distributed, disseminated or disclosed, in whole or in part, to any other person in any way without the prior written consent of Oaktree. and origination platform has helped us maintain and expand these relationships; they are enhanced by our strong reputation for keeping our word and honoring our commitments. What difference can culture make to the success of a firm? Dry Powder PE/VC 2021 - 2022 Trends. Figure 5: Compensation Potential in Middle-Market and Large-Corporation Loans. Virgin IslandsUgandaUkraineUndefinedUnited Arab EmiratesUnited KingdomUnited Republic Of TanzaniaUnited StatesUnited States Minor Outlying IslandsUruguayUzbekistanVanuatuVatican City StateVenezuelaVietnamWallis and FutunaWestern SaharaYemenZambiaZimbabweland Islands. These changes further decreased banks ability and willingness to issue and hold loans to middle-market companies, especially businesses with riskier credit profiles. What fund selection criteria are prioritised? ESG SUMMIT / What Net Zero Economics Means for Private Markets, VALUE CREATION SUMMIT / Visualising Value How to preserve, generate, and optimise value. Thousands? This session will consider: 17:00 Panel / Green policies and reporting standards One school of thought believes renewables are the answer, whilst the other argues that bolder investment in alternative sources such as nuclear will be required. 14:45 / 15:15 - Conference Room #2 (Level 0 - Croisette), 15:15 / 15:45 - Conference Room #2 (Level 0 - Croisette), 15:30 / 16:15 - Conference Room #1 (Level 0 - Croisette). Value creation - where are GPs focusing attention operationally to weather the macro headwinds? Ex-U.S. investors are generally not subject to the ECI tax if the loans in the direct lending fund are to non-U.S. companies and structured properly. Sellers might be forced to offload loans in response to near-term liquidity needs, leverage pressures, regulatory capital requirements, or performance concerns. Middle-market companies with fewer borrowing options are often focused With record dry powder at their disposal, (56%) surveyed expect that secondary buyout funds will present one of the best opportunities for returns over 20202021, Preqin, Preqin quarterly update: Private equity & venture capital, Q2 2020, July 8, 2020. However, the term of the fund-level leverage is often shorter than that of the What areas of private markets are well (or poorly) suited? It is common knowledge that cyberattacks, such as ransomware or data breaches, can destroy value and even lead to bankruptcy. Securing the alignment of interest of the GPs and their LPs in these deals (cash out vs new money). Failure to Properly Structure the Investment: Firms without structuring expertise or with narrow investment mandates may lack the creativity and flexibility needed to adapt to borrowers needs and thus be unable to seize WebThe term applies to personal finance, corporate environment, venture capital, and private equity investing. 15:00 / 15:30 - Conference Room #2 (Level 0 - Croisette). Which GPs to target? 10). Please choose an optionAfghanistanAlbaniaAlgeriaAmerican SamoaAndorraAngolaAnguillaAntarcticaAntigua and BarbudaArgentinaArmeniaArubaAustraliaAustriaAzerbaijanBahamasBahrainBangladeshBarbadosBelarusBelgiumBelizeBeninBermudaBhutanBoliviaBosnia and HerzegovinaBotswanaBouvet IslandBrazilBritish Indian Ocean TerritoryBritish Virgin IslandsBrunei DarussalamBulgariaBurkina FasoBurundiCambodiaCameroonCanadaCape VerdeCayman IslandsCentral AfricanChadChileChinaChristmas IslandCocos (Keeling) IslandsColombiaComorosCook IslandsCosta RicaCroatiaCubaCyprusCzech RepublicCte d'IvoireDemocratic People's Republic of KoreaDenmarkDjiboutiDominicaDominican RepublicEcuadorEgyptEl SalvadorEquatorial GuineaEritreaEstoniaEthiopiaFalkland IslandsFaroe IslandsFederated States of MicronesiaFijiFinlandFranceFrench GuianaFrench PolynesiaFrench Southern TerritoriesGabonGambiaGeorgiaGermanyGhanaGibraltarGibraltarGreeceGreenlandGrenadaGuadeloupeGuamGuatemalaGuineaGuinea-BissauGuyanaHaitiHeard Island and McDonald IslandsHondurasHong KongHungaryIcelandIndiaIndonesiaIraqIrelandIslamic Republic of IranIsle of ManIsraelItalyJamaicaJapanJerseyJordanKazakhstanKenyaKiribatiKuwaitKyrgyzstanLao People's Democratic RepublicLatviaLebanonLesothoLiberiaLibyan Arab JamahiriyaLiechtensteinLithuaniaLuxembourgMacaoMadagascarMalawiMalaysiaMaldivesMaliMaltaMarshall IslandsMartiniqueMauritaniaMauritiusMayotteMexicoMonacoMongoliaMontserratMoroccoMozambiqueMyanmarNamibiaNauruNepalNetherlandsNetherlands AntillesNew CaledoniaNew ZealandNicaraguaNigerNigeriaNiueNorfolk IslandNorthern Mariana IslandsNorwayOccupied Palestinian TerritoryOmanPakistanPalauPanamaPapua New GuineaParaguayPeruPhilippinesPitcairnPolandPortugalPuerto RicoQatarRepublic of KoreaRepublic of MoldovaRepublic of the CongoRomaniaRussian FederationRwandaRunionSaint HelenaSaint Kitts and NevisSaint LuciaSaint Vincent and the GrenadinesSaint-Pierre and MiquelonSamoaSan MarinoSao Tome and PrincipeSaudi ArabiaSenegalSerbia and MontenegroSeychellesSierra LeoneSingaporeSlovakiaSloveniaSolomon IslandsSomaliaSouth AfricaSouth Georgia and the South Sandwich IslandsSpainSri LankaSudanSurinameSvalbard and Jan MayenSwazilandSwedenSwitzerlandSyrian Arab RepublicTaiwanTajikistanThailandThe Democratic Republic Of The CongoThe Former Yugoslav Republic of MacedoniaTimor-LesteTogoTokelauTongaTrinidad and TobagoTunisiaTurkeyTurkmenistanTurks and Caicos IslandsTuvaluU.S. This session will explore efforts to open source best practices for Ethical AI governance. 11:15 / 11:30 - Conference Room #2 (Level 0 - Croisette), 11:30 / 12:00 - Conference Room #2 (Level 0 - Croisette). which are applied when the company seeks to take an action like adding additional debt, and maintenance covenants, which restrict certain activities and require companies to maintain specific leverage and interest-coverage metrics that are EU economy is gradually recovering after the reopening of covid-related lockdowns. Additionally, around 59% Open possibilities for liquidity. The five private equity trends you need to know about Putting policy into practice is easier said than done. Sponsor Financings: Loans related to LBOs, where the lender works with sponsors who have subject-matter expertise in more complex industries. How should LPs consider patience vs velocity in private equity, private debt, and infrastructure? In 2004, there were 26 investors in the average private-equity fund, this figure has now grown to 42 according to Preqin ltd. (formerly known as Private Equity from 18.5 months in 2011. Historically, actual investments have represented around 3% of the total financings our direct lending funds have considered, as potential opportunities According to Preqin, as of August 2021, there was $2.3tn of dry powder in the market globally, with an estimated $714bn raised by November 2021. GP-stakes session description about the growth/institutionalization of private markets. Key markets trends in investment strategies. Every good investment professional loves to analyze markets. Fundraising was $119bn and a decline of 50.5% in Q2 2022, compared to the same period last year. Much of the investment activity to date has provided growth opportunities, such as hydrogen fuel cells, rather than traditional infrastructure. Not only must 10:15 / 11:00 - Conference Room #1 (Level 0 - Croisette). This debate will feature two contrasting views on the methods by which the US and European economies can transition from fossil fuels. Please choose an optionAfghanistanAlbaniaAlgeriaAmerican SamoaAndorraAngolaAnguillaAntarcticaAntigua and BarbudaArgentinaArmeniaArubaAustraliaAustriaAzerbaijanBahamasBahrainBangladeshBarbadosBelarusBelgiumBelizeBeninBermudaBhutanBoliviaBosnia and HerzegovinaBotswanaBouvet IslandBrazilBritish Indian Ocean TerritoryBritish Virgin IslandsBrunei DarussalamBulgariaBurkina FasoBurundiCambodiaCameroonCanadaCape VerdeCayman IslandsCentral AfricanChadChileChinaChristmas IslandCocos (Keeling) IslandsColombiaComorosCook IslandsCosta RicaCroatiaCubaCyprusCzech RepublicCte d'IvoireDemocratic People's Republic of KoreaDenmarkDjiboutiDominicaDominican RepublicEcuadorEgyptEl SalvadorEquatorial GuineaEritreaEstoniaEthiopiaFalkland IslandsFaroe IslandsFederated States of MicronesiaFijiFinlandFranceFrench GuianaFrench PolynesiaFrench Southern TerritoriesGabonGambiaGeorgiaGermanyGhanaGibraltarGibraltarGreeceGreenlandGrenadaGuadeloupeGuamGuatemalaGuineaGuinea-BissauGuyanaHaitiHeard Island and McDonald IslandsHondurasHong KongHungaryIcelandIndiaIndonesiaIraqIrelandIslamic Republic of IranIsle of ManIsraelItalyJamaicaJapanJerseyJordanKazakhstanKenyaKiribatiKuwaitKyrgyzstanLao People's Democratic RepublicLatviaLebanonLesothoLiberiaLibyan Arab JamahiriyaLiechtensteinLithuaniaLuxembourgMacaoMadagascarMalawiMalaysiaMaldivesMaliMaltaMarshall IslandsMartiniqueMauritaniaMauritiusMayotteMexicoMonacoMongoliaMontserratMoroccoMozambiqueMyanmarNamibiaNauruNepalNetherlandsNetherlands AntillesNew CaledoniaNew ZealandNicaraguaNigerNigeriaNiueNorfolk IslandNorthern Mariana IslandsNorwayOccupied Palestinian TerritoryOmanPakistanPalauPanamaPapua New GuineaParaguayPeruPhilippinesPitcairnPolandPortugalPuerto RicoQatarRepublic of KoreaRepublic of MoldovaRepublic of the CongoRomaniaRussian FederationRwandaRunionSaint HelenaSaint Kitts and NevisSaint LuciaSaint Vincent and the GrenadinesSaint-Pierre and MiquelonSamoaSan MarinoSao Tome and PrincipeSaudi ArabiaSenegalSerbia and MontenegroSeychellesSierra LeoneSingaporeSlovakiaSloveniaSolomon IslandsSomaliaSouth AfricaSouth Georgia and the South Sandwich IslandsSpainSri LankaSudanSurinameSvalbard and Jan MayenSwazilandSwedenSwitzerlandSyrian Arab RepublicTaiwanTajikistanThailandThe Democratic Republic Of The CongoThe Former Yugoslav Republic of MacedoniaTimor-LesteTogoTokelauTongaTrinidad and TobagoTunisiaTurkeyTurkmenistanTurks and Caicos IslandsTuvaluU.S. Looking ahead, what is the prediction for the effects of inflation on the economy? What Investors Should Take a Closer Look At, The Patient Capital Playbook Views from private equity, private debt and infrastructure, Emerging Stronger What Private Equity has added to its track record, Beyond Growth Investment strategy in the new tech supercycle, The Culture Factor How GPs develop a distinct DNA and stamina. Portfolio for the Future Toward a new allocation paradigm? attractive opportunities or design financing structures that could maximize risk-adjusted return potential. How Does Oaktree Seek to Address These Risks? How do LPs continue to identify managers with the potential to outperform? Where do I find them and how do I make my tracking actionable? Direct lending, like private debt in general, has grown significantly since the Global Financial Crisis of 2007-2008. The size of the private debt market is expected to cross the $1tn threshold in 2020 or 2021. Do you see differences between Germany, Austrian, and Switzerland in terms of opportunities and attractiveness? This roundtable session will feature small discussion groups and consider how GP and company remuneration can be aligned with investment and management behaviour that is really required to move the needle. to state income taxes and be required to file U.S. tax returns. However, by the fourth quarter, worst-case scenarios in many sectors had failed to materialize, and deal flow not only bounced back, it reached record levels, and activity has remained Yesterday's Covid pandemic, today's energy crisis, soaring interest rates, supply chain disruptions the accumulation of global shocks is forcing countries on the continent to rethink their supply chain, their food security and, more broadly, their economic sovereignty. How are LPs building the capability to evaluate these deals? These solutions, however, often suffer from biases, transparency or privacy issues. How to address climate change through investments in disruptive deep tech. 8:50-9:30 (40 min) Guest Speakers Check-in. Is impact always created from every healthcare investment? But the landscape in Europe is varied with wide variety in the opportunity set between different sub-sectors. Traditional lenders like banks may be unable to properly value these companies assets. What were the biggest lessons from the pandemic? Key markets trends in investment strategies. Taking inspiration from the roundtable discussions, a panel of operating experts will distill the summit into actionable insights for GP delegates to take away and deploy in their firms. document.getElementById( "ak_js_9" ).setAttribute( "value", ( new Date() ).getTime() ); Fill in the information below to be notified when the Croisette Express booking opens on November 25th. Companies that have strong sustainability practices are likely to be able to raise capital on more attractive terms than those without. on the certainty of capital rather than just the cost of capital. This competition will likely only intensify in the near term if fear of rising interest rates increases demand for floating-rate products. This link is being provided as a convenience and does not constitute an endorsement or approval by Oaktree of any products, services, or opinions of the corporation, organization or individual. Through a deep dive discussion with leading VCs and the European Space Agency, the Investing in Space panel looks into the investment landscape in the rapidly growing space sector. As digitalisation has become embedded in every industry, how does this change traditional add-on deal sourcing? Europe, which is seeking to shorten its value chains, will have to turn more to Africa, the last continent on the planet to benefit from a demographic transition and the rise of new generations of consumers. This talk is promising to be highly strategic for investors and advisors that are looking to get serious about a data-driven digital deal sourcing workflow. intervals throughout the life of the loan. Read the answers to these and other questions now. Private debt, or private credit, it is the provision of debt finance to companies from funds, rather than banks, bank-led syndicates, or public markets. Senior debt is at the top of the capital structure and repaid first, making it low risk. (i.e., those that report between $50 million and $1 billion in annual revenue); however, Oaktree broadens the definition beyond first lien loans to encompass many additional forms of middle-market lending, including second lien debt, mezzanine debt Already registered for the event? Short Terms to Maturity: The average term to maturity on these loans is between five and six years compared to over seven years for high yield bonds, and the loans average lifespan is between three and four years. 11:0012:15 (75 min) Session 2 - China-EU cooperation in private equity and investments in third countries More Upside Potential: First lien middle-market loans have offered more yield spread per unit of leverage since late 2016 compared to first lien large-corporation LBO loans (see Figure 5). Any offer of securities or funds may only be made pursuant to a confidential private placement memorandum, subscription documents and constituent documents in their final form.The term Oaktree used herein refers to Oaktree Capital Management, L.P. or its affiliates, individually or collectively, as the context requires.This document is being provided on a confidential basis solely for the information of those persons to whom it is given. A social event, with the presence of AIFI (IT), BVCA (BG), BVK (DE), DVCA (DK), France Invest (FR), FVCA (FI), LPEA (LU), NVCA (NO), NVP (NL), SECA (CH), Spain CAP (ES), SVCA (SE). However, this tax-efficient structure may be inappropriate in some situations. Good alternative to fixed income investments. What advice would they give to new funds looking to raise impact capital? As ESG practices evolve, will we see generalist funds progress to impact-style investment; and do todays impact funds perceive this as a threat? Debt strategies were previously a sub-category of. Example: Loans sold by banks looking to reduce geographic or sector concentration. but have filing demands similar to those of an operating company. U.S. tax law considers loan origination to be engagement in a business or trade, so investors both inside and outside the U.S. may therefore have concerns about increased taxes stemming from direct lending. These unlisted private debt funds differ according to strategy, for example direct lending or fund of funds. BGV is a founding member of the Ethical AI Governance Group (EAIGG), an industry-wide association of entrepreneurs, investors and enterprise executives committed to sharing practical insights and adopting responsible AI governance practices across our industry. 48hrs before the event, ie. How can the investment process be designed to succeed? By contrast, obligors rated B- accounted for around 20% of broadly syndicated CLO pools in same period. Greater Diversification: Private loan performance is often not well correlated with that of other types of assets or with the business cycle in general. In this session, we discuss: This session will dig deeper into some of the less well-known credit strategies, how they work and how to evaluate them in a private debt asset allocation. Links with the organization of shareholders' meetings (voting rights). to solid financial footing, or maximize the recovery value of an investment. Tax-efficient investment solutions are available for limited partners from many geographies. 14:30 / 15:00 - Conference Room #2 (Level 0 - Croisette). But how attractive an incentive is it for companies? Carbometrix will present solutions to monitor carbon performance: to easily embark GPs' portfolio companies in the calculation of their full carbon footprint and to monitor the financed emissions at LP, GP and fund levels. The investor would still be subject Each of the private debt strategies risk/return profiles are dictated by the investment and its position within the capital structure. Moreover, independent third-party sources cited in these materials are not making any representations or warranties regarding any information attributed to them and shall have no liability in connection with the use of such information in these materials. Understanding the concept is essential for investors. How Can an Investor Address Tax Concerns? Our panel will cut through the noise to highlight the five top trends that the private markets community should pay attention to in the next twelve months. more access to the company before and after deal inception and greater control over terms and structure which can be especially advantageous in adverse scenarios. The growth of both markets has been supported by the long-term secular trend of companies staying private for longer, 5 made possible by the expansion of access to private capital. Higher Illiquidity Premium: Direct lenders can often secure higher origination fees and coupon rates compared to investors in BSLs, which are more liquid. Enjoy IPEM practical and dynamic sessions on specific topics to go deeper and find solution together, and get the opportunity to network with participants during lunches and cocktails at the end of each summit. What has been the experience of impact GPs fundraising in this environment? With assets under management rising to $4.74tn, despite a slower fundraising market, growth is set to accelerate as investors search for higher returns. The trends are: 2021: Since 2008, 2021 has been the most successful year in private fundraising capital. Key markets trends in investment strategies, 16:30 / 17:00 - Conference Room #2 (Level 0 - Croisette). M&A and LBO activity declined during this period because financial market participants were Meanwhile, BSLs are increasingly classified as covenant-lite because they rarely include maintenance covenants. This keynote debate will explore how LPs can deliver enhanced diversification and risk-adjusted returns, by considering how alternatives (and private markets) fit within an allocation model. An invitation-only event, sponsored by Ardian. The pandemic provided a boost to the fortunes of direct lenders, as they once again gained market share over traditional bank finance. After providing an update on the cyber threat landscape and on the latest cybersecurity-related regulatory initiatives, we will discuss how investors can manage the cyber risks of their acquisitions and how to better integrate cybersecurity in the investment lifecycle, starting with cybersecurity due diligence. How fast is it growing? Sitting on a record $2.9 trillion of available This session will explore the quest of GPs to build on successful European franchises and offer their LPs new funds in global markets. Psychological health at work, well-being at the workplace, and experienced leaders dedicated to business transformation : 3 complementary strengths to create more value. Distressed funds have amassed a mountain of dry powder on the premise that an economic correction was overdue. Bank lending remains a traditional source of debt, despite the decrease in activity following the Global Financial Crisis (GFC) in 2008 and the tightening of various banking regulations. Practical experiences in implementing energy efficiency within a PE portfolio. Traditional lenders cut back financing following the GFC, which created space in the market for investors such as private debt fund managers to provide alternative sources of lending. Private debt, or private credit, it is the provision of debt finance to companies from funds, rather than banks, bank-led syndicates, or public markets. How will dedicated impact funds continue to differentiate in the face of increased competition? 11:45 Investment Spotlight / Hydrogen For example, Oaktree often engages its own third-party experts prior to making an investment in addition to fully reviewing the sponsors diligence analyses and all What are the market prospects for traditional IPO, trade sale and sponsor deals? What Are the Biggest Risks in Direct Lending? Most of the dividends paid to non-U.S. investors arent subject to U.S. withholding taxes because the BDCs income is primarily 11:25 Discussion #2 (20) / Making the most of the current environment as an LP. Meanwhile, as China gradually improves the quality of its economic development and the level of its openness, RMB is playing an increasingly significant role in cross-border payments. How will inflation risks present opportunities? From the different sources of debt to the capital structure and strategies, you now know the ways investors can allocate to private debt, and why they choose to do so. The relationship-based nature of direct lending and the bespoke nature of the loans involved mean ones ability to properly source, underwrite, structure, and monitor an investment is even more important here than in traditional credit strategies. U.S. tax-exempt investors can also generally avoid being subject to UBTI by investing through a BDC. document.getElementById( "ak_js_5" ).setAttribute( "value", ( new Date() ).getTime() ); Fill-in the information below to receive IPEM Cannes 2022 Teaser, Company Type* If a sovereign wealth fund owns less than half of the blocker, then its interest income and dividends wont be subject to U.S. taxation. Key markets trends in investment strategies. These concerns can often be addressed with specific investment structures: for example, investing through As funds move up the value chain to continue to meet returns expectations, they are confronted with how to get comfortable with a new risk profile. A BDC is designed to help small companies in their early stages of development. U.S. sports platform Fanatics has raised $700 million in a new financing round led by private equity firm Clearlake Capital, valuing Fanatics at $31 billion. The first is the sheer volume of capital sloshing through the market. Lennertz & Co: Ihr unabhngiges Family Office in Hamburg mit klarem Fokus auf Weiterentwicklung und Wertsteigerung des Vermgens unserer Mandanten. In a CLO, the investor gains exposure to a diverse portfolio of existing bank loans. Failure to Manage Fund-Level Leverage: Direct lending funds may use leverage offered by commercial banks to amplify the returns on their investments. It is a model based on attention to the needs and expectations of all: its residents, companies, investors, tourists A community united to catch opportunities in this world, which is reinventing itself. companies because the businesses lack of stable earnings makes simple multiples-based valuation techniques unworkable. The investor receives scheduled interest payments from the underlying loans. As stated above, this often includes income related From 2017-2019, more than 75% of credit estimates had a score of b-. In the mid-market, where companies financing options can be more constrained, we consider the outlook; specifically, how rising interest rates could affect deal flow, pricing and returns: Session in partnership with BVK, SECA and AVCO. Is PE a good investment product for retail investors? Financial footing, or performance concerns resilient will the mid-market be to macro headwinds GP... ( required ) what to watch - can you predict an asset that is for. 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