This study reveals opaque and inconsistent valuation practices for unlisted assets, marked by conservatism, fragmented methodologies, and weak governance. It calls for tighter alignment with market prices to enhance transparency and oversight.
IPE Supplement: EDHECInfra & Private Assets Research Insights
In this supplement, we analyse ESG risks and their consequences for investors, assess the investment impact of climate risk on global infrastructure, and share our latest research findings on infrastructure investment portfolio construction and risk management.
P&I Supplement: Research for Institutional Money Management
We examine ESG risks and their implications for the investment community, the investment impact of climate risk on global infrastructure, and present our latest research insights into infrastructure investment portfolio construction and risk management.
NAV 2.0: A better asset pricing model for private infra
CAPM may be ‘one of the founding frameworks of modern finance’, but for determining the net asset value of unlisted infrastructure it is terribly inadequate. Frédéric Blanc-Brude, the director of the EDHEC Infrastructure Institute explains why and offers an alternative. Originally published in Infrastructure Investor. When reporting the NAV of unlisted assets like infrastructure using discounted cashflows, best practice consists … Read More
The Valuation of Private Companies: Asset Valuation and the Dynamics of Private Markets
This paper proposes a factor model based solution that, when calibrated with transaction data and novel risk factors, can transform sparse, noisy, and biased transaction data into meaningful information that aids asset allocation, benchmarking, and monitoring of private investments.
Low Tide: What the Data Showed About Thames Water
In this paper, we ask what investors in Thames Water – and its holding company Kemble Water – would have learned about the level of risk of their investment and its likely market value had they compared its characteristics to market and peer group data.