Introduction to Asset Pricing in Private Equity (Part I, II and III)

Mr. Ian Phang

Risk Management Institute, NUS

About the Speaker

Ian is a seasoned investment management professional in investment advisory and asset management. Over the span of 20 years, he has managed both private and public listed investment holding firms, as well as registered fund managers under the purview of the Monetary Authority of Singapore (MAS). An ex-Merrill Lynch banker, Ian is experienced in private equity, portfolio management, and asset allocation.

Prior to joining RMI as a Research Assocaite, Ian was a Director of a Global Investment Program Private Equity Fund - a Government approved PE fund in Singapore. He also selectively takes on consulting roles with investment management firms, investment banks, and family offices. He has been a consultant to an UCITS III mutual fund company and Morgan Stanley Asia. His main research interests are in the areas of private equity, risk management, and asset pricing. Ian holds a Master of Science in Finance degree from the City University of New York with Distinction and is currently a PhD in Finance candidate at EDHEC Risk-Institute.

About the Seminar

Private Equity (PE) is an increasingly important asset class – with US$4.2 trillion asset under management (AUM) as of June 2015, eclipsing the AUM of Hedge Funds by US$1 trillion (as of Nov.2015). Despite high competition for quality investments, the asset class continues to attract ‘record’ new capital due to the ability to generate returns. Yet assessing risks adjusted returns in PE from the investor’s perspective is non-trivial – making conventional modelling approaches employed in public equities largely inappropriate.

The series of 3 talks combine academic rigour with the insight of a senior industry practitioner to open up one of the more complex areas of financial management; focusing on the Asset Pricing side of private equity that has implications to managers, regulators and investors in that asset class.

The objectives of the talks are as follows:

12 January 2017 (Part 1)
An overview of the structure and economics of PE funds

• To develop an understanding of the roles played by the parties involved in PE.
• To consider the attractions of PE as an investment.
• A look at PE Performance measures.

17 & 19 January 2017 (Part 2 & 3)
An introduction to the Asset Pricing side of PE

• An overview on the risk characteristics of private equity, how deals are valued, the role of leverage, and exit routes.
• To critically evaluate the valuation techniques employed in PE transactions.
• An examination of how performance is benchmarked – provides the skills to evaluate potential private equity opportunities.