Investor Strategies & Returns – Perspectives from the Global Private Equity Barometer

• Returns that Limited Partners have made
• LP Expectations from the different Sub-Sectors of Private Equity
• Factors that LPs see as critical to their Investment Success
• Latest Issues and Priorities for Private Equity Investors Worldwide

Speaker:
Frank Morgan, Partner, COO, Coller Capital

4:15 PM - Emerging Markets & The Global Scope of Private Equity

• What is the rationale and incentives for LPs and GPs to go International?
• BRIC Economies – GDP, Growth, Debt and Reserves
• The search for Returns in BRIC Economies and other Emerging Markets
• Which Countries offer the best Opportunities?
• How do the various markets compare on a regional basis?
• The up-and-coming Middle East
• Is Smart-Money shifting to Frontier Markets?
• Identifying and Managing Risks specific to Emerging Markets  
• Developing Exit Strategies
• Where are we in the cycle?
• Long term outlook

Moderator/Speaker:
Kevin Davis, Trustee, Baltimore Retirement Systems

Speaker:
Hussein Khalifa, Partner, MVision Private Equity Advisors USA, LLC

4:45 PM – Asia Special Situations – Non Performing Loans and Other Distressed Asset Opportunities in China

• Background of China Loan Market and its Evolution
• Government Policy and Focus
• Significant Supply of NPLs in China and the pressure to sell them
• Lack of Qualified Buyers
• Attractive Macro-Economic Environment Characteristics
• NPL Due Diligence Process
• What sort of Risk Adjusted Returns can be expected?

Speaker:
Phil Groves, Managing Director, Angelo, Gordon & Co.

The Implications of Sovereign Wealth Funds on
Private Equity

Sovereign Wealth Funds, largely created by foreign economic and oil-price stabilization funds, will play a large role for the foreseeable future as price setters on global capital markets and private equity.  These wealth accumulation funds are financed by explosive growth from budget and trade surpluses, (in many circumstances from oil profits).  The growth of capital from sovereign wealth funds, mostly based in the Middle East and Asia, is staggering.  They control an estimated $3 trillion in assets with expectations to grow to $10 trillion by 2012.

• Issues on Open Capital Markets, Transparency, Security Risks, Political Sensitivity, Accountability and Government Control of Corporations
• How has the relationship between US Private Equity Firms and Sovereign Wealth Funds evolved over the past one to two years?
• Will the recent investments in the Financial Services Industry remain the trend?
• What’s next after the stakes taken in Blackstone and The Carlyle Group?
• Will Sovereign Wealth Funds loosen the grip of the Credit Crunch?
• Effects of Sovereign Wealth Funds on Buyouts and Exit Strategies

Moderator:
Arthur Hidalgo, Board Member, Chair of Private Markets Committee, Orange County Employees’ Retirement System

Speakers:
Phillip A. Godfrey, Director, Pathway Capital Management
Monte Brem, Chief Executive Officer, StepStone Group

Public Fund Views on Private Equity

• The increased commitment to Private Equity by Public Pension Plans – will the appetite remain strong despite the end of the buyout boom?
• Performance Objective and Long Term Returns
• Asset Allocation Trends within your overall portfolio and within Private Equity
• The strategic role of Emerging Markets, Co-Investments and Secondaries
• Diversification by Sub-Sector/Strategy, Manager and Geography
• The Age of Critical Manager Selection
• What are you adjusted expectations from Buyouts Returns?
• Have your expectations for Manager Fees Changed?
• Are you more eager to invest in Emerging Markets?
• What Fundraising Trends have you noticed?

Moderator:
Michael Travaglini, Executive Director, Massachusetts Pension Reserves Investment Management, (PRIM)

Speakers:
Thurman Zollicoffer, Trustee, State Retirement & Pension System of Maryland
Dory Wiley, Trustee, Head of Alternative Assets Committee, Teacher Retirement System of Texas

Welcome Reception

Join us for Cocktails at The Peninsula Chicago with a view of the city.  This is an opportunity to meet your fellow Conference participants and peers in a casual setting.  Familiarize yourself with the conference group at the Open Bar.

Chairman’s Opening Remarks

Chairman: Dory Wiley, Trustee, Head of Alternative Assets Committee, Teacher Retirement System of Texas

Keynote Speaker

Trends and Outlooks within the Changed Landscape of the Buyout Industry  

Thomas H. Lee, Chairman, CEO, Lee Equity Partners

Private Equity Portfolio Diagnostics

• What is your optimal Allocation to Private Equity?
• Is your commitment pacing optimal?
• How does your performance compare to your Private and Public Market Benchmarks?
• What generated your performance?
• Is your Portfolio sufficiently Diversified and performing as expected?
• What is your Risk/Return profile?
• Prospective Managers – will they decrease your portfolio’s risk through diversification and add to its return?

Speaker:
Austin Long, Partner, Alignment Capital Group

The Great Debate - Is the Golden Age of Private Equity Over?  The Effects of the Credit Crunch

• Lessons Learned from the Credit Crunch
• Can Leveraged Loans that have financed Buyouts become the Subprime Mortgage Crisis of tomorrow? (as referred to by BlackRock’s Larry Fink)
• What sort of Buyout Returns can we expect due to the high multiples paid?
• Does the slowdown in Buyouts shift the focus to Emerging Markets, (including the Middle East) Venture, Distressed and Mezzanine Opportunities?
• Are the Big GP’s going public essentially a dead issue?
• Will we see an improvement in the Quality of Deals, Transparency and Disclosure Standards?
• Is the stage set for the stronger players to prosper?

Moderator:
William Rubin, Vice Chair, Trustee, Philadelphia Board of Pensions

Speakers:
David Hutchings, Head of Private Equity, Albourne Partners Limited
Robert Finkel, Managing Partner, Prism Capital
Pete Keliuotis, Managing Director, Strategic Investment Solutions, (SIS)

Buyouts

• Back to making money the old-fashioned way?
• Behind the Scenes - Collateralized Loan Obligation, (CLO) Markets
• The Case for Lower Returns – What are the realistic expectations?
• Size of Buyouts – trending to Smaller Deals?
• Size of Funds to drop as well?
• Slower Pace of Distributions
• Importance of Management Leadership – as great as ever?
• Will we see a downward pressure of Fees for Managers that are not the “Cream of the Crop?”
• What do you expect from the Exit Environment?
• What’s it going to take to get a Fund launched and raised for 2008-2009?
• Capital Gains Issues

Moderator:
Greg Kulka, Director - Private Equity & ETI Programs, New Mexico State Investment Council

Speakers:
Michael Russell, Partner, Head of Europe, Altius Associates
Rich Kracum, Managing Director, Wind Point Partners

Refreshment Break

Distressed Investing

• Defaults on the rise
• The current state of the Consumer and the Economy – what will be the effects on the Distressed Market?
• Size of the US High Yield and Leveraged Loan Market
• Abundance of low-quality rated B Minus or below Loans
• Which industries will be in the most financial trouble?
• What will you do to be prepared?
• Returns Expectations
• Opportunities that will arise as a result of Bankruptcies
• How to identify companies that are primed for a turnaround
• Convergence of Hedge Funds and Private Equity – implications on the Distressed Market

Moderator:
Rene Nunez, Trustee, Chairman, Texas Permanent School Fund

Speakers:
Reid Smith, Director, Private Markets Investments, Evaluation Associates
William Monagle, Jr., Partner, Senior Consultant, NEPC, LLC
Sheryl Schwartz, Managing Director, TIAA-CREF Asset Management

Venture Capital

• Trends in VC – What can we expect from Fund Size, Investment Growth, Returns, Activity in Seed, Early and Growth Stage
• Technological Advances
• Niche Opportunities in Small Venture
• Has the Technology Sector matured or is there still enough innovation left for Early Stage Investing?
• Emerging Market Opportunities/Risks
• Improving IPO Market?
• Venture Capital Performance versus other subdivisions
• What are today’s best Venture Strategies to create Growth and Value?
• Which Venture Sectors are now poised for Growth and what are the new Catalysts?
• How to differentiate
• What to look for in a GP
• New Investment Models Post Venture – Providing a Solution to the lack of  IPO Exit Options

Moderator:
Chason Beggerow, Partner, Altius Associates 

Speakers:
Stephen Evans-Freke, Co-Founder, General Partner, Celtic Therapeutics Management, LLLP
James Watson, Managing Director, CMEA Ventures

CleanTech Investing

• Behind CleanTech Investing – Climate Change, Economic Growth in China and Energy Security
• Attracting higher levels of Institutional Capital
• 2008 – The make or break year for CleanTech?
• Which Technologies look the most promising?
• Challenges
• The Exit Outlook

Moderator:
Kelly Candaele, Board Member, Los Angeles City Employees’ Retirement System

Speakers:
Joanne Yoo, Senior Investment Officer, New York State Common Retirement Fund, Office of the State Comptroller
Tim Woodward, Managing Director, Nth Power LLC

Benefiting from Private Equity Emerging Managers

• Superior Growth Prospects
• Exploiting Price Inefficiencies by utilizing Emerging Managers
• Statistical Evidence backing Emerging Managers
• How Emerging Managers Diversify and balance Asset Allocation to enhance Fund Performance
• Due Diligence and Key Points of Analysis for Selecting Emerging Managers – management team, track record and attribution, generating deal flow, ect.

Moderator:
Kelly M. Williams, Managing Director, Co-Head, Credit Suisse Customized Fund Investment Group

Speakers:
Kristine Brandt, Principal, Invesco Private Capital
Joseph Haslip, Executive Director of Pensions, New York City Retirement Systems
James Mason, Managing Partner, Parish Capital Advisors, LLP

Fund of Funds

• Fund of Funds Characteristics – history, evolution, structure, market growth, fundraising, types of managers
• Who invests in Fund of Funds and what are their needs/goals?
• Where might Fund of Funds fit in a Private Equity Portfolio?
• Advantages and Disadvantages of Fund of Funds
• Selecting a Fund of Funds Manager – due diligence, key criteria, what are the points of distinction?
• Types of Fund of Fund Managers
• Emerging Fund of Funds Strategies – one-stop solution vs. specialized strategies, global vs. regional scope
• The value of investment “access”
• Are Funds of Funds gaining or waning?  
• The perception of Funds of Funds in the GP community
• Fund of Fund Investment Process – fund formation, manager selection, portfolio diversification, portfolio management, and investor relations

Moderator:
Brey Jones, Vice President of Client Services and Business Development, StepStone Group

Speakers:
Carmen Gigliotti, CFA, CPA, Managing Director, Private Markets Group, DuPont Capital Management
Michelle Davidson, Managing Director, Pacific Corporate Group, (PCG)

Infrastructure Investing

• Statistical Analysis – how fast is Infrastructure growing and where is it projected to be for the Future?
• Benchmarking Returns and comparing against other Asset Classes
• How can Infrastructure fit into your Asset Allocation?
• Risk-Return Profiling – Which Infrastructure Assets are classified as High Risk and Low Risk?  What is your approximate Return Potential for each?
• International Opportunities
• Long Term Revenue Streams
• New Approaches and Opportunities to Invest in Infrastructure

Moderator:
Rick Agosto, Trustee, Texas Permanent School Fund

Speakers:
Michael Moy, Managing Director, Pension Consulting Alliance
George Diehr, Chairman of the Investment Committee, Vice President, Board of Administration, CalPERS

Consultant Round-Table

• How does a Consultant identify talent and evaluate managers?
• The Screening Process
• Strategic and Structural Reviews
• Performing Due Diligence on opportunities and Partner Selection
• Top mistakes made by GP’s
• What are your expectations for Buyout Returns?
• How has your Allocation Strategy within Private Equity changed over the past year?  Where has your focus shifted?
• Views on Frontier Markets
• What will be the effects of a US recession on Private Equity?
• Do you expect to see an industry shake-out with several medium to large buyouts unable to raise funds for deals?
• What Trends do you see emerging?

Moderator:
William T. Charlton, Jr., PhD, CFA, Managing Director, Context Capital Partners

Panelists:
Matthew O’Reilly, Partner, Aldus Equity
Kelly M. Williams, Managing Director, Co-Head, Credit Suisse Customized Fund Investment Group
Brett Nelson, Principal, Head of Global Private Equity, Ennis Knupp + Associates
Reid Smith, Director, Private Markets Investments, Evaluation Associates
Alan Kosan, Head of Non-Traditional Investments, RogersCasey

Speed Dating

Time for the Managers, Consultants, and Plan Sponsors to solidify the relationships made over the course of the day.  Interact and discuss challenges and issues among the Private Equity investment industry.  Get a feel for the current direction of the various Plan Sponsor’s investment programs, focus, outlook and considerations.  While this should not be a marketing session for Managers, it should act as a stepping stone to exploring mutual business objectives and strategies.

Each session will be 7 minutes of one-on-one Speed Dating, (8 Sessions)

Conference Concludes