Private Equity, frank discussion & free-to-attend ACT events

The debate over private equity becomes livelier by the day and at the ACT we continue to monitor, as we have done for some time, the implications of the growth of private equity for finance professionals working in treasury, risk and corporate finance. If we put on one side for the moment the political and social concerns coming to the fore, at the very least the financial engineering and governance principles raise questions, challenges and opportunities for many of our members.

We have been hearing, for example, how investors are taking a less than conventional view of the need for core treasury skills and how these skills are being sourced – whether from the companies involved in private equity transactions or from advisers or from some combination of these. The implications for corporate financial policy within companies that could be the target of private equity bids are also starting to come onto the agenda.

We are under no illusions that our activities can provide any, or all, of the answers but we are endeavouring to look at how we can encourage debate and awareness amongst members and others with a commitment to the finance profession. To help you look at this area our CPD spotlight quiz is on private equity and I would also like to draw your attention to the keynote speech at The Treasurers’ Conference being delivered by John Singer of Advent International. John is a leading figure in the European private equity scene and has already led a discussion at the ACT’s Advisory Board on private equity; I expect his contribution at the conference to be lively and outspoken.

The ACT is proud of the series of professional Papers that we arrange for members and their guests. Our most recent one was delivered by Peter Hickson, the Chairman of AWG, who spoke very frankly about his experience at board level of changing approaches and fashions in corporate finance. We were fortunate in being able to offer Peter the chance to speak under Chatham House rules and his openness was much appreciated.

I consider the provision of events that are free-to-attend to be an integral part of what the ACT can offer its members and their guests. We are now running a significant number of events and I hope that you feel that we have got the balance right in terms of their content and in the mix of free and paid-for events. I should particularly mention two upcoming programmes. On 22 March we have a one-day conference on Managing Risk in Emerging Markets and on 29 March we have a free evening symposium on Implementing a Pension Scheme De-risking Strategy. Both events seem to me to cover issues that are central to what many of our members are grappling with – and are likely to continue to do so for some time to come.

In our professional qualifications we were pleased that the enrolments for the first run of our new senior level qualification, the MCT Advanced Diploma, attracted above target numbers. Amongst the first group of candidates there will be a mix between those taking tuition through conventional face-to-face sessions and those using the on-line tutoring facility. What is particularly encouraging is to see that close to 40% of the first group of candidates are based outside the UK – drawn from the rest of Europe, the Gulf area, the Far East and the Americas. A central part of what we are seeking to achieve with this exciting new qualification is its international applicability and therefore the diversity of candidates that will be attracted to it. Although it is early days these initial enrolments do suggest that such objectives can be achieved.

We will be holding a Council election and members of the ACT will be encouraged to vote for four people to join our Council for a period of three years. We have a mix of existing Council members standing for re-election and people who would be new to the ACT’s governance structure. The ballot papers will be distributed shortly and must be returned by 23 March. As in previous years the on-line voting facility will be open and I hope that many members will choose to use this.

By richard.j.raeburn@gmail.com