Professional Training

Private Debt Masterclass

2 days
2,195 GBP excl. VAT
Next course start
9 September, 2024 See details
Course delivery
2 days
2,195 GBP excl. VAT
Next course start
9 September, 2024 See details
Course delivery
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Course description

Private Debt Masterclass

  • Examine debt valuation and the applied principles
  • Assess structuring issues for private debt funds
  • Examine the private debt investment process and form your own strategy
  • Explore the significance of Environmental, Social and (corporate) Governance (ESG)
  • Scrutinisethe regulatory constraints
  • Examine the applicationof private debt to commercial and development initiatives
  • Gain an understandingof key terminology specific to private debt financing

Upcoming start dates

1 start date available

9 September, 2024

  • Classroom
  • London
  • English

Training Course Content

Private Debt in Context

  • What is private debt?
  • Historical perspective and the emergence of a distinct asset class
  • Who are the participants in the private debt market?
    • pension plans
    • foundations
    • insurance companies
    • fund of funds
    • endowments
    • asset managers
    • family offices
    • wealth managers
    • government agencies
    • others
  • Why private debt? Issues include
    • 2008 credit crisis and bank regulation
    • quantitative easing
    • track record
    • diversification appeal
    • defensive nature of private debt
    • leveraged lending guidance
    • developments in alternative assets
    • pressure on PE management fees
    • not all private debt is illiquid

Structuring Issues for Private Debt Funds

  • Private limited partners and general partners
  • Partnership structuring issues
  • General partner’s key activities
  • Key operational issues for private debt funds
  • Remuneration and compensation
    • management fees
    • carried interest
  • Differences from private equity structures
    • investment allocation
    • hybrid features
    • leverage and fees

Private Debt Investment Process

  • Programme design
    • strategic asset allocation process
    • portfolio construction and investment platform structuring
    • cash flow planning
  • Implementation
    • fund sourcing
    • due diligence
  • Ongoing tasks
    • monitoring
    • reporting

Classifying Private Debt

  • Senior
    • infrastructure
    • senior real estate
    • senior direct
    • unitranche
  • Junior
    • subordinated real estate
    • syndicated mezzanine
    • mezzanine
    • high yield
  • Equity and equity linked
    • private equity co-investments
    • warrants

Private Debt Investment Strategies

  • Direct lending
  • Mezzanine
  • Infrastructure debt
  • Venture debt
  • Distressed debt
  • Credit special situations
  • Bridge financing
  • Other – e.g. active over all phases of the credit cycle
  • Speciality finance

Private Debt Financial Instruments

  • Bank loans, first lien
  • Second lien
  • Unsecured notes
  • Subordinated debt
  • Preferred shares
  • Mezzanine finance
    • debt types of instruments
    • characteristics – PIK etc.
    • equity types of instruments
    • vendor debt


  • Why valuation is important in private debt
    • governance and capital attraction
    • regulation
  • Comparison of private debt and public debt valuation
    • methodologies
    • data availability
  • The private debt approach to valuation
    • payoff, timing and risk
    • determining credit spread
    • what affects risk
    • applicable regulations, standards, policies, and guidelines to consider
    • discount rate analysis to determine the cost of debt
    • using the discount rate to determine value
    • valuation challenges
  • Guidelines on private equity valuations - International Private Equity and Venture Capital Valuation (IPEV) Guidelines

Governance and ESG

  • What is ESG - Environmental, Social and (corporate) Governance
  • What are ESG factors
  • Why ESG factors are important in private debt
  • Key ESG considerations for private debt
    • areas for improvement
    • pressure to implement
    • challenges in implementation

Commercial Applications

  • Leveraged Buy Outs – LBOs
    • review of LBO history, importance and rationale
    • LBOs and private debt structuring
    • requirements for LBO success
    • challenges with LBO private debt funding when problems arise, the case of IHeartMedia
  • Distressed debt, using a case study example
    • valuing distressed debt and financial modelling
    • developing scenarios for a distressed company, e.g.
    • full recovery outside bankruptcy
    • sale of business based on its enterprise value
    • asset liquidation
    • importance of cash flow analysis and liquidity constraints
    • debt leverage and interest coverage ratios in relation to financial covenants
    • analysing the recovery value of the distressed debt

Development Initiatives

  • Impact investing
    • private debt or fixed income instruments are the largest asset class in impact investing
    • why impact investing, including evidence of performance
    • impact investing strategies:
    • direct investment
    • indirect investment via intermediaries
    • different types of financial instrument – mezzanine finance
  • Venture debt
    • why venture debt

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IFF - International Faculty of Finance
Maple House 149, Tottenham Court Road
W1T 7AD London

International Faculty of Finance - IFF Finance - Specialist Training Courses

As one of the world's leading specialist financial training organisations, The International Faculty of Finance provides participants in the global financial markets with intensive technical training programmes designed to help them succeed on the global stage.  Established in 1991 we...

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