A&M Senior Director Antonella Puca spoke with Alex Proimos, Head of Institutional Content of Investment Magazine, a leading sovereign wealth, institutional investment and fund management publication, on the Market Narratives podcast series.

In this episode, they discuss the role of income, asset-based and market approaches for unlisted companies in the current environment of elevated valuations, specific considerations for real assets and infrastructure, and the importance of reviewing subscription lines of credit and exit timing when assessing private equity performance.

The topics included valuation complexities for private equity and venture-backed companies in the current environment, the challenges of using a discounted cash flow model and the asset-based approach. The interview also covered special considerations for the valuation of real and infrastructure assets and the challenges of valuing unicorns (over $1 billion in valuation private companies) that have yet to achieve profitability.

Also discussed were: 

• How to interpret performance metrics such as the internal rate of return (IRR) and multiples of invested capital (MOIC);
• How subscription lines of credit can affect IRR and fees; and
• How the time to exit can significantly affect performance.

Listen to the podcast here.

Contact Antonella if you would like to have a conversation.