Private Debt Investing

Course Overview

This course provides a detailed exploration into the nuanced world of private debt, offering a comprehensive guide for investors and finance professionals. Starting with an introduction to the market’s segmentation, definitions, and various strategies including direct lending, growth capital, distressed debt, and investments in real estate and infrastructure, this course delves into the size, growth, and key market participants.

The programme covers the fundamentals of private debt investing, such as the mechanics of closed-end funds, partnership structures, economic terms, performance measurement, and an overview of debt products. The due diligence process is thoroughly examined, from business and accounting investigations to the strategic analysis of business plans and macro factors.

Participants will also learn about valuation methods, structuring deals, legal documentation, and the intricacies of leveraged buyouts and distressed debt remedies. Furthermore, the course addresses investing in private debt funds, including the design of investment programs, due diligence, regulation, and ESG considerations.

Learning Objectives

• Understand the segmentation, definition, and various strategies within the private debt market, including direct lending, growth capital, distressed debt, and investments in real estate and infrastructure.
• Gain comprehensive knowledge on the fundamentals of private debt investing, including the structure and economics of closed-end funds, partnership arrangements, and an in-depth look at different debt products.
• Master the due diligence process, encompassing business and accounting due diligence, macro and industry analysis using Porter’s 5 forces model, company analysis, and the critical evaluation of financial health and strategies.
• Acquire skills in financial modelling and valuation techniques, including Discounted Cash Flow (DCF), Adjusted Present Value (APV), and Multiples, with practical modelling examples to enhance learning.
• Learn to structure private debt facilities effectively, understanding the implications of seniority, ranking, subordination, financial covenants, events of default, and pricing strategies for direct lending and leveraged buyouts.
• Navigate the legal documentation process for private debt investments, from confidentiality agreements to term sheets and facility agreements, and develop the capability to design, conduct due diligence on, and monitor private debt investment programs, with a keen awareness of regulation and ESG considerations.