Pensions and Retirement Training Course on Illiquidity and Private Market Allocations
Master Pensions Retirement Training with expert training. 10 Days course with certification. Comprehensive training program. Online & in-person. Enroll now!
Pensions And Retirement Courses10 DaysCertificate Included
Duration
10 Days
Mode
Online & Physical
Certificate
Included
Language
English
Course Overview
This advanced course equips pension fund professionals with the knowledge and skills to manage illiquid investments and allocate effectively to private markets, including private equity, infrastructure, real estate, and private credit. Participants will explore the risk-return trade-offs, valuation techniques, liquidity management, and portfolio construction principles essential for incorporating private market allocations into pension fund strategies. The course combines theory, quantitative modeling, and real-world case studies to ensure practical applicability and long-term portfolio resilience.
Secure enrollment • Professional certificate included
Learning Objectives
By the end of this course, participants will be able to:
Understand the role of illiquid investments and private markets in pension fund portfolios.
Assess the risk-return profile of private market investments.
Design strategic allocations to private equity, infrastructure, real estate, and private credit.
Apply portfolio construction techniques under liquidity and funding constraints.
Evaluate valuation methodologies and reporting requirements for illiquid assets.
Manage liquidity risk and cash flow requirements in multi-asset portfolios.
Analyze the impact of private market allocations on funding ratios and ALM.
Implement governance, monitoring, and due diligence frameworks for private markets.
Understand fee structures, legal considerations, and contractual obligations.
Integrate illiquid and private market allocations within the pension fund’s overall investment strategy.
Course Content
Module 1: Introduction to Illiquidity and Private Markets Overview of private markets: private equity, infrastructure, real estate, private credit Strategic rationale for including illiquid assets in pension portfolios Role of illiquidity in portfolio diversification and return enhancement Global trends and allocation patterns in pension fund private investments Case study: Private market allocation strategies in major pension funds
Module 2: Private Market Investment Structures Fund structures: limited partnerships, co-investments, direct investments Governance and legal frameworks for private investments Roles of general partners, limited partners, and fund managers Capital commitment and drawdown mechanics Workshop: Analyzing different private market investment structures Module 3: Risk and Return Characteristics Performance measurement in private markets Understanding illiquidity premium and long-term return drivers Volatility, correlation, and diversification benefits Risk factors: market, operational, liquidity, and regulatory risks Scenario analysis and stress testing for private market allocations
Module 4: Valuation and Reporting of Illiquid Assets Valuation methods: discounted cash flow, NAV, comparable transactions Frequency of valuation and regulatory requirements Challenges in fair value measurement and transparency Reporting frameworks for private market investments Workshop: Valuation exercises using real-world private market data Module 5: Portfolio Construction with Illiquid Assets Strategic asset allocation incorporating private markets Balancing liquidity, funding requirements, and return objectives Portfolio optimization under liquidity constraints Integration with public market exposures and ALM strategies Case study: Constructing a multi-asset portfolio with 20–30% private market allocation Module 6: Liquidity Management and Cash Flow Planning Understanding cash flow risk in illiquid portfolios Planning capital calls, distributions, and reinvestments Managing liquidity buffers and emergency funding requirements Stress testing liquidity under adverse scenarios Workshop: Liquidity modeling for a private market portfolio Module 7: Due Diligence and Manager Selection Evaluating private market managers and investment opportunities Operational, legal, and financial due diligence Assessing track record, team, and governance standards ESG and sustainability considerations in private markets Practical exercise: Conducting a due diligence review Module 8: Governance, Monitoring, and Oversight Establishing governance frameworks for private market investments Performance monitoring and reporting to trustees and regulators Managing conflicts of interest and fiduciary responsibilities Risk management policies and oversight processes Case study: Effective governance practices in large pension funds Module 9: Legal, Fee, and Contractual Considerations Fee structures: management fees, carried interest, hurdle rates Contract terms, co-investment rights, and exit strategies Regulatory considerations in different jurisdictions Mitigating legal and operational risks in illiquid investments Workshop: Negotiating investment terms for a private fund Module 10: Capstone Project and Practical Integration Integrating private market allocations into overall pension strategy Designing allocation plans considering liquidity, risk, and return objectives Scenario analysis and stress testing of illiquid portfolios Presenting a comprehensive private market investment policy Group project: Creating a full private market allocation strategy for a hypothetical pension fund
Who Should Attend
Pension fund trustees, investment officers, portfolio managers, asset allocators, risk managers, actuaries, compliance officers, and consultants involved in private market investment and illiquidity management.
