Alternative Investments
Course Start Date: 1st October
Training Duration: 5 Days
Practical application through exercises:
- Excel Exercises
Learning Outcomes
Understand the role of Alternative investments in an investor’s portfolio
Learn to perform risk – return analysis for private equity investments
Understand how to use variance analysis to track budget vs actual performance.
Learn to perform risk – return analysis for private credit funds
Learn to perform risk – return analysis for hedge funds
Understand the role of other different types of alternative investment asset classes
Course Outlines
What are Alternative Investments….?
• Role of Alternative Investments in an investor’s portfolio – Return enhancement and diversification
• Special considerations while investing in alternative assets
B. Private Equity
• Private Equity’s role in asset allocation and long-term investing
• The different kinds of Private Equity Funds – Venture Capital, Leveraged Buyout
• Private equity performance across different stages of economic cycle
• The flow of capital and the J-curve risk
• PE manager selection – Quartile rankings, IRRs, Multiples and Benchmark selection for different fund types
• Introduction to SPACs and understanding their risk return issues
• Private Equity performance across different stages of economic cycle and selecting the right fund type based on the
economic outlook
• Exit and valuation risks in private equity investments
Exercise: Delegates to analyze various private equity fund investments opportunities
Hedge funds as an asset class and their role in a bank’s investment portfolio
• The different styles of hedge funds – Equity Market, Event Driven, Relative Value, Opportunistic, Specialist and Multi
Manager
• Evaluating hedge fund’s risk and return performance – Rolling Returns, Downside Deviation, Sharpe, Sortino, etc.
• 4Ps of Hedge fund evaluation
• Hedge Fund performance across different stages of economic cycle and selecting the right manger based on the
economic outlook
• Exit and valuation risks for hedge fund investments
Exercise: Delegates to analyze various hedge fund investments opportunities
• Private credit funds as an asset class and their role in an investor portfolio
• Types of private credit funds – mezzanine, senior debt, distressed credit, etc.
• Understanding risk – return profile for private credit funds
• Private credit performance across different stages of economic cycle
• SPV ratings vs issuer rating
Real Estate
• Overview of real estate as an alternative investment asset class and role in an investor portfolio
• Public real estate investments – REITS – role, types, valuation basics and key risks
Commodities
• Role of commodities in an investor portfolio – inflation hedge, return enhancement, diversification
• Sources of return to commodity futures – Spot, Collateral and roll
Cryptocurrencies
• Cryptocurrencies as an alternative investment asset class – risks and benefits
• Things to consider while investing in cryptocurrencies – Primary Markets (ICO) and secondary
• Ways to invest in cryptocurrencies – Direct and Indirect (ETF, Funds)