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

PresentationGlobal private markets

Ross HayterInvestment Director, Private Markets Product Strategy & SolutionsAberdeen Standard Investments

July 2018

Ross HayterInvestment Director (Private Markets)

Global 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.

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Adjective / Noun“Investments not traded on a public exchange or market”

Private ˈprʌɪvət /

Marketˈmɑːkɪt/

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


“The systems and services that cities or countries use in order to operate effectively”


“Development of assets that comprise of land and buildings”


“Private Credit is debt provided directly to businesses or projects and the debt is not traded on an exchange.


“Investment into businesses and ventures that are not traded on the stock exchange”

The rise of private markets

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US Capital Raising in 2017

Source: Dealogic; Wall Street Journal analysis of SEC filings; Token Report

$2.1 trillion2007-20171990-2007

-0.2 +0.5Public stock and bond markets$2.4 trillionPrivate equity and debt market

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2007-20171990-2007

-0.2 +0.5$2.1 trillionPublic stock and bond markets

$2.4 trillionPrivate equity and debt market

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2007-20171990-2007

-0.2 +0.5

$1.65 trillionPrivate placementsEquity and debt offerings, sold mostly to relatively well-off ‘accredited’ investors

$6.5 billionInitial coin offeringSales of cryptocurrencies and tokens to raise money for products and services

$35 millionSecurities crowdfundingUp to about $1 million a year per issuer, sold mainly to smaller investors.

$782 billionDebt sales to big investorsSold to ‘qualified institutional buyers’ —investors with typically at least $100 million in assets under management.

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Increasing activity in Europe

Source: Unquote Barometer, 31 December 2017

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But…Getting it wrong can be costly

Source : Aberdeen Standard Investments

There are ways to mitigate this risk

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-50 -40 -30 -20 -10 0 10 20 30 40 50

2000 (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)

• Manager, sector and geographic selection is important

• Fundamental research and portfolio construction is key

• Secondary market can also generate outperformance

IRR vs TVPI (Global 2000-2016)

Private Markets Innovation

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A brief history lesson

Public capital makes a decision Private capital makes a decision

1950 Transaction Platform

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Three predictions for use of technology in private markets

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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

Three predictions for use of technology in private markets

Source: Aberdeen Standard Investments

Asset value bridge, breaking down key performance drivers

Portfolio cash flow by investment per asset class

Portfolio migration over time

Conclusion


“Private enterprise is all around us”

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Pace of innovation is gathering and the future seems closer than ever

Source: Gizmodo

From 1958 to 1963, a Sunday comic strip predicted the future. Arthur Radebaugh's Closer Than We Think represents mid-century futurism at its most optimistic!

2017 - Daimler Benz Concept car

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Thank you

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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.

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PresentationGlobal private markets

Ross HayterInvestment Director, Private Markets Product Strategy & SolutionsAberdeen Standard Investments

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