Presentation Global private markets. Ross Hayter. Investment Director, Private Markets Product Strategy & Solutions Aberdeen Standard Investments

Transcription

1 Presentation Global private markets Ross Hayter Investment Director, Private Markets Product Strategy & Solutions Aberdeen Standard Investments

2 July 2018 Global Private Markets Ross Hayter Investment Director (Private Markets) This communication is intended for investment professionals only and must not be relied on by anyone else. Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments.

3 Private ˈprʌɪvət / Market ˈmɑːkɪt/ Adjective / Noun Investments not traded on a public exchange or market 9

4 Slides relate to Standard Life Investments Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments

5 The systems and services that cities or countries use in order to operate effectively Slides relate to Standard Life Investments Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments

6 Development of assets that comprise of land and buildings Slides relate to Standard Life Investments Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments

7 Private Credit is debt provided directly to businesses or projects and the debt is not traded on an exchange. Slides relate to Standard Life Investments Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments

8 Investment into businesses and ventures that are not traded on the stock exchange Slides relate to Standard Life Investments Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments

9 The rise of private markets

10 US Capital Raising in 2017 $2.1 trillion $2.4 trillion Public stock and bond markets Private equity and debt market Source: Dealogic; Wall Street Journal analysis of SEC filings; Token Report 16

11 US Capital Raising in 2017 $2.1 trillion Public stock and bond markets $2.4 trillion Private equity and debt market Source: Dealogic; Wall Street Journal analysis of SEC filings; Token Report 17

12 US Capital Raising in 2017 $782 billion Debt sales to big investors Sold to qualified institutional buyers investors with typically at least $100 million in assets under management. $1.65 trillion Private placements Equity and debt offerings, sold mostly to relatively well-off accredited investors $6.5 billion Initial coin offering Sales of cryptocurrencies and tokens to raise money for products and services $35 million Securities crowdfunding Up to about $1 million a year per issuer, sold mainly to smaller investors. Source: Dealogic; Wall Street Journal analysis of SEC filings; Token Report 18

13 Increasing activity in Europe Source: Unquote Barometer, 31 December

14 But Getting it wrong can be costly There are ways to mitigate this risk 6 IRR vs TVPI (Global ) Manager, 5 sector and geographic selection is important 4 Fundamental research and portfolio construction is key 3 Secondary market can also generate outperformance (106) 2001 (68) 2002 (53) 2003 (55) 2004 (103) 2005 (142) 2006 (190) 2007 (214) 2008 (184) 2009 (65) 2010 (97) 2011 (119) 2012 (128) Source : Aberdeen Standard Investments 20

15 Private Markets Innovation

16 A brief history lesson Public capital makes a decision Private capital makes a decision 1950 Transaction Platform 22

17 A brief history lesson Public capital makes a decision Private capital makes a decision 2018 Transaction Platform 23

18 A brief history lesson Public capital makes a decision Private capital makes a decision 2018 Transaction Platform 24

19 Three predictions for use of technology in private markets 25

20 Three predictions for use of technology in private markets Asset value bridge, breaking down key performance drivers Portfolio cash flow by investment per asset class 1. Portfolio analytics will identify drivers of value and create private markets risk transparency 2. Use of artificial intelligence and machine learning to find value in direct investing 3. Blockchain will disrupt ways of accessing private markets Source: Aberdeen Standard Investments Portfolio migration over time 26

21 Conclusion

22 Private enterprise is all around us Slides relate to Standard Life Investments Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments

23 Pace of innovation is gathering and the future seems closer than ever From 1958 to 1963, a Sunday comic strip predicted the future. Arthur Radebaugh's Closer Than We Think represents midcentury futurism at its most optimistic! Source: Gizmodo Daimler Benz Concept car 29

24 30 Thank you

25 The information shown relates to the past. Past performance is not a guide to the future. The value of an investment can go down as well as up. Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments Any data contained herein which is attributed to a third party ("Third Party Data") is the property of (a) third party supplier(s) (the Owner ) and is licensed for use by Standard Life Aberdeen**. Third Party Data may not be copied or distributed. Third Party Data is provided as is and is not warranted to be accurate, complete or timely. To the extent permitted by applicable law, none of the Owner, Standard Life Aberdeen** or any other third party (including any third party involved in providing and/or compiling Third Party Data) shall have any liability for Third Party Data or for any use made of Third Party Data. Neither the Owner nor any other third party sponsors, endorses or promotes the fund or product to which Third Party Data relates. ** Standard Life Aberdeen means the relevant member of Standard Life Aberdeen group, being Standard Life Aberdeen plc together with its subsidiaries, subsidiary undertakings and associated companies (whether direct or indirect) from time to time. Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. Calls may be monitored and/or recorded to protect both you and us and help with our training Standard Life Aberdeen, images reproduced under licence 31

26 Presentation Global private markets Ross Hayter Investment Director, Private Markets Product Strategy & Solutions Aberdeen Standard Investments