Private Markets Valuation Overview

The current economic environment, geopolitical uncertainty and the more recent financial markets upheavals have sparked the debate across the investment industry regarding private asset valuations. This session explores the valuation process and details the steps of how to estimate the values of private assets, providing an overview of industry practices and guidelines.

We will focus on the three different valuation approaches which include the market approach: the income approach and the replacement cost approach which are standard market techniques as recommended by the International Private Equity and Venture Capital Valuation guidelines (IPEV).

Although this is not an in-depth technical overview of the valuation process, it provides participants with the key knowledge and information surrounding the valuation value chain.

Important Information: This course will be delivered in a hybrid format, but please note that there are limited in-person spaces available, which are offered on a first-come, first-served basis.

If you see the "Join waiting list" button and wish to attend, please contact training@theia.org for assistance with registration.

Key Learning Objectives:

• Understand the difference between valuing public and private businesses
• Familiarise yourself with standard market valuation techniques and best practices
• Analyse the potential drivers of valuation premiums or discounts
• Outline the responsibilities of the triangular relationship between the investment manager, the fund valuation committees and third-party valuation providers
• Discuss the adoption of a Valuation Policy Document and what should be in it
• Considerations of valuations during volatile markets

9:30 Start

• Differences between valuing public and private businesses
• A regulators concept of what is fair value
• The fair value hierarchy – valuation inputs level I to III
• The valuation approaches – how to estimate the fair value
• Market approach
• Income approach (discounted cash flow analysis)
• Replacement cost approach
• Potential drivers of valuation premiums and discounts

11:00 Break

• The need for calibration and the use of Price of Recent Investments (PRI)
• Considerations and questions to bear in mind during volatile markets
• The adoption of a Valuation Policy Document
• What should be in the document and the use of independent valuation experts
• Private markets valuation upticks and comparisons to the public markets

12:30 Finish

Russell Hammerson
Russell Hammerson is an experienced banker working with structured products and exotic options over 15 years.

Russell started his career in the fixed income trading division at Chase Manhattan in 1986. After having graduated from the Chase nine-month advanced financial risk analysis programme, he was seconded to the Chase insurance banking division for a year. Taking his insurance expertise with him, he later moved to Citibank to work in the financial engineering division, structuring fixed income and equity products for institutional investors.

From Citibank, Russell moved to Bear Stearns to help set up the newly established equity derivatives group as associate director responsible for marketing and structuring of European products prior to becoming head of structured products at Commerzbank.

Before moving into the technical training arena, Russell ran the structured product group at Banque Nationale de Paris followed by Bankgesellschaft Berlin, London, in a similar role as head of engineered products and international new issues and director of the London Management Committee.

Russell has been training all areas of capital markets since 2001. At BG Consulting (now trading as ZISHI Cornerstone), he specialises in structured products, equity and credit derivatives and exotic options.

IA Member £395.00 +VAT
Non-Member £545.00 +VAT

Pay using a credit card online, or if you wish to be invoiced please email your full details to: Training@theia.org

PLEASE NOTE: Full payment for the course must be made prior to the course commencement date.

• Any cancellation must be made in writing.
• For all cancellation received 15-30 days prior to the course start date, 50% of the course fee is still payable.
• No refund is given for a cancellation made 14 days or less prior to the commencement of a course.
• Transferring from one course to another is treated as a cancellation. You can substitute one delegate for another at no additional cost. In this instance, please give two business days’ notice.

Hybrid Training Courses:

Hybrid deliveries of our training allows participants on our courses the option to attend in-person here from our offices at Camomile Court, or you can attend virtually via MS Teams.

Please be advised a training course could change from hybrid delivery to solely virtual delivery. In such an event, we will inform delegates at least one week prior to the course delivery date.

There are a limited number of in-person spaces available on this course and this will be allocated on a first come first served basis.

This course is delivered at an introductory and will be useful to a wide range of staff working in all areas of the business, including new starters and staff transferring between functions, as well as staff in supporting roles. It will also be a useful refresher for those with more experience who will benefit from an opportunity to improve their understanding of the various valuation techniques applied to more illiquid investments.

• Marketing/Sales/Distribution/Business Development Officers
• Investment Operations and Administration Officers
• Financial Reporting Officers
• Wealth Managers
• Risk Managers
• Legal Officers, Auditors and Compliance Officers