The African Private Equity and Venture Capital Association (AVCA) is pleased to invite you to a three-day intensive fund manager masterclass covering all you need to know when investing and managing private equity and venture capital funds in Africa.
Tuesday 18th February 2020
5:30 PM – 5:45 PM Registration
5:45 PM – 6:00 PM Introductions and Opening Remarks
6:00 PM – 7:30 PM Module 1: Business Model of Investment Funds
This session explains the business model of private capital funds (including PE and VC funds) with a focus on fund structures in emerging markets. It describes the structures of funds, and the incentive structure and compensation of the fund manager, including fees, expenses and carried interest.
7:30 PM – 8:30 PM Dinner
8:30 PM – 9:00 PM Module 2: Introduction to Case Study
The case addresses how investors select a fund and fund manager, the due diligence of a fund and the structuring of the investment. Participants will break into working groups to analyse and discuss the case, based on the roles assigned to each group. The case will form the basis of discussions in modules 9 and 10.
Wednesday 19th February 2020
9:00 AM – 10:00 AM Module 3: Investment Funds Structures
This session outlines the legal structures of investment funds (PE & VC) and discusses typical terms. Domiciliation issues will be addressed in the context of Egypt-focused funds.
10:00 AM – 11:00 AM Module 4: Components of a Successful Fund
This session provides a framework to establish a well-structured fund and describes the components that are needed and how these relate to each other. Drivers of returns and strategic options for funds to achieve targeted returns will be explored.
11:00 AM – 11:15 AM Refreshment Break
11:15 AM – 1:30 PM Module 5: Fund Manager Roles, Responsibilities and Value Addition
This session describes the composition of the fund management team, the skill set needed, the roles and responsibilities of the team members, and the role of the fund management team to grow profitable and sustainable companies.
Mini-case #1: Team retention
Mini-case #2: Adding Value Plan
1:30 PM – 2:30 PM Working Lunch
2:30 PM – 3:30 PM Module 6: Sourcing & Deal Flow: Turning Opportunities into Investments
This session covers key considerations for sourcing deals and building a pipeline.
3:30 PM – 4:30 PM Module 7: Structuring the Investment
This session provides examples of various deal structures, investment instruments with examples for both PE as well as venture deals.
4:30 PM – 5:30 PM Module 8: Due Diligence of Funds
This session outlines and explains the structure of fund due diligence. It focuses on the evaluation of the risks to consider, the appropriateness of the fund strategy, the fund management team and its capabilities to deliver the strategy, and the deal flow, pipeline, and exits. Due diligence tools and resources are presented. Integrity and ESG due diligence processes will be addressed.
Thursday 20th February 2020
9:00 AM – 10:30 AM Module 9: Case Study – Due Diligence
In their roles as either fund managers or fund investors, participants review and discuss the merits of an investment in the Fund. Taking into consideration the outcome of the due diligence, each manager group prepares a presentation to the investor group. The investor groups prepare questions and areas for discussion with the managers, including the fund's strategy and key terms under which they would choose to invest in the Fund.
10:30 AM – 11:30 AM Module 10: Manager - Investor Negotiations
Each of the manager group presents the Fund to one of the investor groups. The investor group must delve into the merits of the proposed investment, including a review of the Fund's risks, its likely success and its fit with the investor's strategy. The two teams negotiate the key terms for the Fund.
11:30 AM – 11:45 AM Refreshment Break
11:45 AM – 12:30 PM Module 11: Portfolio Monitoring and Reporting
The session gives an overview of portfolio monitoring, risk management, and reporting to investors.
12:30 PM – 1:30 PM Module 12: Valuations
This session outlines the different methods of valuing investments in companies for different financial instruments and provides an understanding of how valuations are reflected in the fund manager reports to investors.
1:30 PM – 2:30 PM Working Lunch
2:30 PM – 4:00 PM Module 13: Fund Governance
This session explains the governance structure of funds and best practices in fund governance. Participants will explore a series of mini-cases to illustrate typical issues faced by fund managers and fund investors.
Mini-case #3: Conflict of Interest
Mini-case #4: Key Person Event
4:00 PM – 4:15 PM Refreshment Break
4:15 PM – 5:15 PM Module 14: Fundraising
The session provides a framework for successful fundraising for a fund. Best practices in pitching to investors will be explored. Expected marketing and fund documents will be outlined and described including topics to be addressed in these documents and level of details.
5:15 PM – 5:45 PM Module 15: The Impact of PE & VC on Economic Development
5:45 PM – 6:00 PM Wrap-Up, Feedback and Conclusion