ALFI / IFBL Training and Career Path Certification

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1 Private Equity Investment Funds Professional ALFI / IFBL Training and Career Path Certification This comprehensive programme of private equity training modules, created in a partnership between ALFI and the IFBL, aims to support the growing international reputation of Luxembourg as a major Private Equity hub. It objective is to increase in the level of quality and professionalism delivered by service providers and does this through this programme of modules offering both a theoretical and applied understanding of the industry s activities. In particular this programme covers the industry s: fundamentals, its structures and actors, operational processes (incl. risk), accounting, investment strategies, tax and valuation. These courses offer a rich learning opportunity for Private Equity professionals both in and outside Luxembourg and together represent an important additional possibility in career path certification at the IFBL. The courses are directed at multiple levels, from those who are new to this domain to active seasoned professionals and from those simply seeking to deepen their knowledge in specific areas to others wishing to consolidate and certify their experience through recognised examinations. In addition to the core modules of the private equity programme the IFBL offers additional modules of interest to private equity professionals such as AIFMD ( Understanding AIFMD as detailed in this brochure), M1 UCITS and Non UCITS ManCos and numerous others for which details are available on our website ( This programme, now in its fourth year continues to improve and evolve. It has also received some excellent feedback from its past participants: Good workbook and a very good mix combining theory and practice. Very clear and well structured. Excellent trainer knowledge and an excellent way of teaching! Thank you so much! Partners IFBL With a steadily increasing number of registrations, the Institute is one of the leading providers of vocational training courses in Luxembourg. The Luxembourg Institute for Training in Banking (IFBL) was created in 1990 as the training organ of the Luxembourg Bankers Association (ABBL, and has the distinctive mission to prepare, create, develop and promote any training means, programmes and actions in the interest of the financial centre of Luxembourg ( ALFI The Association of the Luxembourg Fund Industry (ALFI) is a non-profit making association that is the representative body of the Luxembourg investment fund community. Created in 1988, ALFI is a member of European Fund and Asset Management Association (EFAMA) and International Investment Fund Association (IIFA) and has as its mission to lead industry efforts to make Luxembourg the most attractive international centre for investment funds. ALFI has as its objective to help its members capitalise on industry trends, shape regulation, encourage professionalism, integrity and quality and to promote the Luxembourg investment fund industry.

2 Concept This career path certification, focused on Private Equity, further broadens the existing training offer in investment funds developed by ALFI and IFBL. The training offer consists of comprehensive modules, allowing certification at three levels in Private Equity administration, accounting and business processes management. The courses can also be attended individually (subject to prerequisites) with optional examinations, as per other courses currently available from the IFBL training catalogue. All courses are taught in English. Three basic modules (M1) deliver the basic theory, providing the: fundamentals of Private Equity, the basics of Private Equity fund structuring and Private Equity roles and responsibilities. A certification Specialist Private Equity - Administration will be issued to participants who sit and successfully pass the associated exams for these modules. A combination of eight further, advanced and specialist modules (M2, M3 and M level), provide a more practical orientation, operating on the basis of exercises, case studies and opportunities to master complex issues through interaction with recognized industry professionals. Two further advanced paths of certification are also available to: Specialist Private Equity - Business Processes or Specialist Private Equity - Accounting by sitting the Business Process and Controls or the Accounting modules respectively and passing their associated examination. These certifications can be complemented through valuable further optional modules: Private Equity Strategies (4): Mezzanine, Fund of funds, Microfinance, Opportunistic Real Estate, two modules concerning Private Equity Valuation, Understanding AIFMD and other modules available in the full investment fund offer at the IFBL. The following overview summarizes the career path certifications described above:

3 Trainers A team of expert trainers in the field of Private Equity investment funds will be responsible for the delivery of the extensive material to be covered in this programme. Trainers for all modules have been proposed by ALFI to teach on behalf of the IFBL. The trainers have been selected on the basis of their recognized expertise and strong practical industry experience considered essential in order to facilitate interactive responses within the sessions. Programme M1 Private Equity Fundamentals Fundamentals of Private Equity (8 hours) The Private Equity business model and its economic impact The J curve and other key Private Equity concepts Overview of the types of financing structures The organization of a Private Equity fund Overview of the Private Equity markets, trends and developments Prerequisites: None M1 Private Equity Structuring Fundamentals of Fund Set Up and Structuring in Private Equity (8 hours) Overview of Private Equity vehicles in Luxembourg Comparison with other jurisdictions Private Equity-specific contractual agreements Legal and regulatory processes to launch a Private Equity fund The role of the regulator Tax aspects of Luxembourg Private Equity fund structures Prerequisites: (Strongly recommended) M1 Private Equity Fundamentals M1 Private Equity Roles & Respons. Fundamentals of the Roles and Responsibilities of Private Equity Professionals (4 hours) This module provides an overview of the actors involved and their roles and responsibilities. The Alternative Investment Fund Manager (AIFM) The General Partner The Limited Partner Marketing The Depositary The Fund Administrator The Registrar and the Transfer Agent The Auditor The Legal Advisor The Tax Advisor Prerequisites: None

4 M2 Private Equity Business Processes & Controls Understanding Business Processes and Controls in Private Equity (24 hours) Fund set-up & structuring: tax and legal aspects, including practical examples Deal structuring and draw down: type of instruments, overview of deal clauses, draw-down mechanisms Fund raising: strategies and examples, commitment mechanism, closing Operations & processes (in the context of AIFMD): - PE administration (valuation of PE assets, NAV calculation, management fees, the registrar, transfer and paying agent, domiciliation) - The role of the depositary and its responsibilities in a PE context (overview of vehicles requiring a depositary bank, role and duties of the depositary bank / by instrument). Risk management: - The regulatory environment for risk management of AIFs and SIFs - Defining an AIFMD compliant risk and liquidity management framework - Identifying, measuring and managing risk (liquidity, counterparty, credit, operational) in the context of real estate. - Leverage concepts and how they increase the volatility of returns - Building market and liquidity stress tests (quantitative versus qualitative approach) Investment exit: the three main exit routes in Private Equity (IPO, secondary, trade sale) Distribution: the waterfall model, theory and practice Liquidation Equity Roles and Responsibilities of Private Equity Professionals M3 Private Equity Accounting & Reporting Mastering the Specificities of Fund Accounting and Reporting for Private Equity (24 hours) Accounting and disclosure of instruments for PE investments under LuxGAAP Accounting under US GAAP: general overview in a PE context, main issues raised by conversion from LuxGAAP to US GAAP Accounting and disclosure of instruments under US GAAP Accounting and disclosure of Luxembourg PE vehicles under IFRS Advanced accounting under IFRS: consolidation, IFRS 3, IFRS 7, IAS 39 Focus topic: contribution in kind Focus topic: accounting & disclosure of distribution Focus topic: accounting and reporting impact by kind of exit Reporting: EVCA reporting guidelines, investor, statutory and regulatory reporting, long form report A solid knowledge base and applied knowledge of either traditional or alternative fund accounting is also expected for all participants on this course.

5 M Private Equity Strategy: Mezzanine Specificities of Mezzanine Strategies within Private Equity (4 hours) Market overview Operating model Key risks for custodians and central administrations Valuation M Private Equity Strategy: F.of F. Specificities of Fund of Fund Strategies within Private Equity (4 hours) Market overview Risk management Legal and tax implications Valuation, M Private Equity Strategy: Microfinance Specificities of Microfinance Strategies within Private Equity (4 hours) Market overview Risk management Valuation Tax implications M Private Equity Strategy: Opp PERE Specificities of Opportunistic Strategies Involving Real Estate within Private Equity (4 hours) Market overview & business models Opp PERE fund structuring Valuation Risk management

6 M Private Equity Valuation I (Theory) Specificities of Valuation within Private Equity (Theory) (4 hours) Valuation part I: theory Market approach Income approach IPEVC Guidelines Special requirements: IAS 39 and FAS 157 Focus on specific requirements for SICARs, SIFs, unregulated vehicles and either M2 Private Equity Processes and Controls or M3 Private Equity Account.& Reporting. M Private Equity Valuation II (Case Study) Specificities of Valuation within Private Equity (Case Study) (8 hours) Applied learning through a case study, using the theory taught in the module M Private Equity Valuation I (Theory). Persons wishing to take part in this course must have previously attended the module M Private Equity Valuation I (Theory). M Private Equity Valuation I (Theory) and either M2 Private Equity Processes and Controls or M3 Private Equity Account.& Reporting. Understanding AIFMD (8 hours) The Alternative Investment Fund Manger s Directive (AIFMD) now regulates the activities of alternative investment fund managers and has had a profound impact on the fund industry in Luxembourg. Understanding AIFMD provides comprehensive explanations and discussion regarding the content, objective, scope and practical impacts of the directive. Although AIFMD may come up as a topic within the various contexts of the programme s modules, a fundamental understanding of the directive is strongly recommended in order to fully understand the directive s implications. This training will provide an understanding of: The AIFMD, its political environment, objectives and impact The regulatory process The scope of the AIFMD Passports, marketing and management Authorization Conduct of business (incl. governance, internal control, rules of conduct, remuneration, conflicts of interest) Functions and service providers (incl. portfolio management, risk / liquidity management, delegation and sub-delegation, valuation, depositary) Transparency (disclosure to investors, annual reports, reporting to competent authorities) Specific provisions The impact to investors, product ranges and organizational models Implementation of the AIFMD Prerequisites: None

7 Practical Information Dates and prices of courses M1 Private Equity Fundamentals hours 195 M1 Private Equity Structuring hours 195 M1 Private Equity Roles & Respons am am 4 hours 100 M2 Private Equity Processes & Controls 03 to hours 16 to M3 Private Equity Accounting & Reporting 26.10, 10 and hours 955 M Private Equity Strategy: Mezzanine am 4 hours 130 M Private Equity Strategy: F. of F pm 4 hours 130 M Private Equity Strategy: Microfinance am 4 hours 130 M Private Equity Strategy: Opp PERE pm 4 hours 130 M Private Equity Valuation I (Theory) am 4 hours 130 M Private Equity Valuation II (Case) hours 255 Understanding AIFMD Please see on our website 8 hours 425 (All prices +3% VAT) Examinations Exam sessions take place every Tuesday and every last Thursday of each month except on school holiday weeks in Luxembourg. The participant s choice is to be indicated on the registration form. The price of examinations is 40 for M1 modules and 45 for M2 & M3 modules. M1 Examinations are 1 hour in length, M2 / M3 modules 1,5 hours in length and the M courses do not have examinations. Course schedules 8.30 to am / 1.30 am to 5.30 pm * In order to make our courses more accessible to those coming from outside Luxembourg, the start time for the Private Equity Fundamentals module ( ) will be This session will be an intensive course; the content covered will be identical to all other instances of the same course. Training location Centre de Formation IFBL/Chambre de Commerce, 7, rue Alcide de Gasperi, Luxembourg/Kirchberg Registrations Registrations are to be made using the registration form. Completed forms should be sent to the IFBL either by fax ( ) or by mail to the following address: IFBL, 12, rue Erasme, L-1468 Luxembourg / customer@ifbl.lu