Alternative assets valuation - Introduction

Alternative asset classes (private equity, private debt, venture capital, infrastructure and real estate) have grown significantly over the past years and are expected to continue to grow as institutional (and individual) investors seek ways to diversify their portfolio holdings with various return and risk profiles.

Fair valuation of alternative investments/assets, including strength and reliability of the valuation process, is an ever-increasing area of focus for investors, fund managers, 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 alternative valuation curriculum to help participants to understand the challenges associated with fair valuation assessment of alternative investments/assets.

This introduction course is designed for participants to acquire, develop a foundational knowledge of valuation concepts, methodologies and techniques used to value interest held privately. It is complemented by modular courses, which provide further insights on significant asset classes within alternatives (private equity, private debt, venture capital, infrastructure and real estate).

By the end of this training, the participants will be able to acquire a foundational knowledge and understanding of valuation concepts, existing valuation guidelines and recognised methodologies across the alternative assets industry.

• Valuation concepts for alternative products
• Valuation guidelines and framework (IPEV guidelines, international valuation standards, Red Book)
• Valuation methodologies (market approach, income approach, net assets approach)

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.).

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 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 Chartered Financial Analyst (CFA) and Chartered Valuation Surveyor (MRICS).