Alternative assets valuation and valuation oversight: private equity

Private equity as an asset class has raised significant interest from institutional and individual investors over the past years. Private equity funds are often seen as a resourceful way of funding companies of various sizes and natures, with an attractive expected risk-adjusted return.

Prices, implied in a theoretical transaction, are not directly - if not at all - observable, as private equity investments are not quoted by nature, which makes the fair valuation assessment an inherent challenge.

Fair valuation of private equity investments, including strength and reliability of the valuation process, is an ever-increasing area of focus for investors, accounting standards setting bodies, auditors and regulators in the context of unprecedented market conditions and a challenging global economy.

PwC's Academy has developed this course to explore with participants the common valuation methodologies and techniques used in performing fair valuation assessment of private equity investments together with the corresponding inherent challenges of this asset class.

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

• obtain a comprehensive knowledge on valuation concepts specific to private equity assets;
• understand recognised methodologies (including valuation allocation techniques) and apply them.

• Key concepts in business valuations
• Recognised valuation methodologies
• Quote price in the context of a Private Equity/Venture Capital asset valuations
• Market multiples
• Transaction multiples
• Discounted cash flows
• Price of a recent investment as an input in the calibration exercise
• Case study

This training is coordinated by Alexandre Goossens, Partner at PwC Luxembourg.
The session is presented by PwC subject matter experts dealing on a daily basis with alternative assets valuation topics.

Alexandre, Partner, joined PwC Luxembourg in September 2014 and is responsible for the Real Estate and Infrastructure Advisory services. Alexandre has gained a strong experience through his missions as consultant and valuer.

He leads a team dedicated to the annual review of more than 2,000 assets in real estate, debt (backed by real estate collaterals), infrastructure and forestry with an exposure on world markets and is managing an extensive real estate market database that covers all markets and all sectors. Alexandre is responsible for the implementation of models and processes for the three key functions of fund management companies in the context of AIFMD (valuation, risk management, portfolio management). He is also an active member of the Royal Institution of Chartered Surveyors (RICS) and is the lead instructor in real estate valuation.

Alix is an audit director in the Alternatives Valuation Services (AVS) department at PwC Luxembourg within the Assurance Alternatives practice.

He currently specialises in reviewing valuation models and assumptions used for private company equity and private debt valuations for financial reporting purposes. Alix has performed business valuations for a variety of purposes, including fair value accounting, impairment testing and deferred tax asset recoverability assessments.

In his role, Alix has exposure to a range of valuation methodologies such as discounted cash flow models, trading and transaction multiple valuations, milestone analyses, and net asset value as a practical expedient.

He holds the Chartered Financial Analyst (“CFA”) designation and is a Certified Public Accountant (""CPA"") licenced in the state of Massachusetts.

Samir joined PwC in 2012 and is a director within our Alternatives Valuation Services (AVS) practice.

He has developed expertise of the private equity industry in the context of assurance engagements, with a focus on business valuations and modelling. He gained an extensive knowledge and set of skills on valuation processes, techniques, and market practices along with the relevant auditing skills.

Samir helps lead our AVS practice in managing and delivering a diverse range of alternative investments and assets valuation engagements, in the context of assurance and non-assurance services, to local and international clients and PwC offices. He has exposure to a wide range of valuation methodologies such as discounted cash flow models, trading and transaction multiple valuations, net asset value approach as well as milestone analyses, primarily in the context of financial reporting.

Samir is a Chartered Financial Analyst (CFA) and a Chartered Valuation Surveyor (MRICS).