Written by: Seth Myers
My fellow Americans,
Quick run down since the last post:
Competed in Duff & Phelps first annual Vending Machine Challenge. Challenge consisted of eating one of every item in the vending machine during the work day. Let’s just say after 6000 calories and 250 grams of fat, I thought I was going to die.
And last, but certainly not least:
So, what have I been doing at Duff & Phelps?
I have been working on a few projects, all of which are valuation based projects. Fortunately, due to the fact that it is busy season and I am the only Portfolio Valuation (PV) Intern, I have been getting to perform analyst work, as well as logging client billable hours.
- One of the first major projects that I worked on was for a large company known as a Fund of Funds (FOF). FOF is a company whose portfolio consists entirely of interests in other investment funds. The company has nearly 250 private equity fund holdings with roughly $2 billion of assets under management (AUM). These 250 holdings equate to about 3,000 individual private equity investments because as mentioned above, these 250 investments are investment funds themselves. I performed comparable company analysis on a portion of the of investments that Duff & Phelps reviews to determine the reasonableness of the position’s carrying values. I used data provided from the client, financial models in Excel, and online databases comprised of thousands of companies’ financial information to accurately value our client’s investments.
- I’ve valued investments for one of the largest Hedge Funds (HF) in the world. The fund has roughly $25 billion of AUM and solicits Duff & Phelps for a substantial amount of work . By utilizing multiple different valuation methods and financial performance metrics, the PV team verifies the carrying values of this company’s investments. We compare financials of the underlying company from the previous quarter and the current date of the valuation, which enables Duff & Phelps to provide this company with positive assurance (the carrying values are reasonable) on their investments carrying values. In order to accurately verify the investment values, we use comparable company, yield, weighted average cost of capital (WACC), liquidity, and waterfall analyses to verify the reasonableness of the fund’s carrying values. As a final step, we generate a reports that are presented to the client and its fund administrator, which explain our valuation methodologies, as well as the underlying information that we took into account when analyzing the investment.
Be on the look out for “People of the Subway.” I’m simply building the suspense.
** Surprised that you survived NYC, Matt Farr, Amanda Graham, and Leah Platt. Brother Jimmy’s will never be the same again… **