Administration of alternative investment funds - Administration and management

AIFs vehicles are becoming increasingly popular in the Luxembourg marketplace.

Although this asset class was already represented in Luxembourg with several vehicles in the form of UCI or non regulated vehicles, the recent trends have highlighted to local administrators and depositaries that ALT investments are an asset class with totally different features and sources of risk requiring specific skills and specific operational processes.

In this context, PwC's Academy is pleased to offer this dedicated training designed to provide Luxembourg professionals with a comprehensive overview of the latest industry trends, as well as a thorough analysis of sector-specific issues and best practices.

By the end of this training, the participants will be able to:

• identify the nature and purpose of the AIF industry
• identify valuations methodology and related accounting impact
• understand the life cycle of an AIF and related accounting entries
• understand the operating/accounting flows within an AIF
• have a basic understanding of legal and regulatory aspects, including the different type of structures/funds available in Luxembourg and their features
• describe the requirements in terms of disclosure in the financial statements for the different Luxembourg structures

1. Understand the Luxembourg environment and how it fits into the European landscape

2. Understand the main features of the ALT industry, its main strategies, actors and stakeholders

3. Administration of AIFs:

• Supervision of investment and divestment transactions
• Key phases of a transaction
• Key terms of a share purchase agreement
• Accounting impacts

4. Supervision of assets

• Investment in operating companies
• Investment in underlying private equity funds
• Specificities of mezzanine debt instruments

5. Valuation of investments

• Accounting valuation rules
• Valuation guidelines
• Recognised methodologies
• Accounting issues

6. Specific accounting and control issues

• Capital accounts
• Management fees
• Preferred return/carried interest
• Cumulative loss and clawback provisions
• Income

7. Luxembourg GAAP framework and compliance requirements

• Financial statements and disclosures
• Consolidated accounts vs. statutory accounts
• IFRS considerations
• Publicity and filing of financial statements

An attendance certificate will be sent to participants.

Nicolas Payet, Partner at Pwc Luxembourg, has been with PwC for more than 16 years, building knowledge in the alternative investments industry ("ALT"). He is an active member of our integrated alternative investments department and the leader of our private debt funds group.

Nicolas has also developed his skills in the alternative assets management practice of the PwC New York office during a 2 years tour in the U.S.A., serving one of the top American banks’ PE line of business. He is also leading our internal and external training programme for the ALT practice at PwC and he dedicates part of his time to train our clients and other actors of the industry.