Alternative assets valuation and valuation oversight: venture capital

Venture capital has gained momentum over the past years and is expected to continue to do so in the context of the current market and economic environment. Venture capitalists support and provide financing to companies across various stages of development from seed stage to expansion stage, and even through Initial Public Offering (IPO) for the successful companies. They have supported the emergence of new ideas, software and technology, medicine or medical equipment, and have developed the venture capital into a thriving asset class. Early stage companies nonetheless remain unprofitable for an extended period and are therefore continuously challenged on their ability to achieve key developmental milestones. This uncertainty poses significant challenges to market participants to implement traditional valuation methodologies and techniques in order to perform fair valuation assessment of venture capital investments.

PwC Academy is pleased to offer this course designed to help participants navigate through the challenges associated with fair valuation in this asset class.

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

• obtain a comprehensive knowledge of valuation concepts specific to venture capital investments;
• understand recognised methodologies (including valuation allocation techniques) and apply them.

• Key terms and features of venture capital investments (including stage of development)
• Conceptual framework to perform the valuation assessment of venture capital investments
• Recognised valuation methodologies
• Probability-expected return weighting
• Scenario analysis
• Option pricing method
• Milestones analyses;
• A series of practical examples allowing participants to apply the concepts covered in the training

An attendance certificate will be sent to participants.

This training is coordinated by Talat Kadret, Partner at PwC Luxembourg.

The session is presented by PwC subject matter experts dealing on a daily basis with alternative assets valuation topics.

Talat is an audit partner in the Alternative department of PwC Luxembourg.

Since joining PwC in 2007, he has gained experience through numerous assignments in both medium size and international companies. In particular, he has developed strong skills in auditing investment funds with a large focus on the private equity and venture capital industries.

He is also leading our Alternatives Valuation Services (AVS) practice. Talat is currently focused on private equity and venture capital through the audit of several structures organised under various types of companies (SICAR, SIF, RAIF, SCSp, holding) as well as through the review of the valuation of the funds participation (review of the fair market value using different valuation methods, application of the IPEV guidelines, etc.).

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).