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Banking Essentials - Part I
This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.
Greenwashing
Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.
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Tackling the Cost of Living Crisis
In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.
CSR and Sustainability in Financial Services
In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.
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Mark Homans
Our sky high NPS following learner feedback speaks for itself - this platform has delivered a lot of value.
Fiona Quinn
Learning is accessible and the tool assists in the continued development of all our employees. It is a fantastic tool for our business!
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Categories
Discover our Courses
Featured Pathways
More pathways
Banking Essentials - Part I
This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.
Greenwashing
Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.
More pathways
Ready to get started?
Plans & Membership
Find the right plan for you
Our Platform
Expert led content
+1,000 expert presented, on-demand video modules
Learning analytics
Keep track of learning progress with our comprehensive data
Interactive learning
Engage with our video hotspots and knowledge check-ins
Testing & certification
Gain CPD / CPE credits and professional certification
Managed learning
Build, scale and manage your organisation’s learning
Integrations
Connect Finance Unlocked to your current platform
Featured Content
More featured content
Tackling the Cost of Living Crisis
In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.
CSR and Sustainability in Financial Services
In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.
More featured content
Ready to get started?
Our Solutions
About Us
Testimonials
More testimonials
Mark Homans
Our sky high NPS following learner feedback speaks for itself - this platform has delivered a lot of value.
Fiona Quinn
Learning is accessible and the tool assists in the continued development of all our employees. It is a fantastic tool for our business!
More testimonials
Ready to get started?
Private Equity Asset Class Performance
Gavin Ryan
25 years: Private equity & banking
Private equity performance statistics should always be analysed with some scepticism; because they are extremely unreliable and inconclusive. Gavin explains why this is the case by analysing the key performance metrics: Internal Rate of Return (IRR), Cash Multiple, Distributions to Total Value (DVTV) and Residual Value to Total Value (RVTV).
Private equity performance statistics should always be analysed with some scepticism; because they are extremely unreliable and inconclusive. Gavin explains why this is the case by analysing the key performance metrics: Internal Rate of Return (IRR), Cash Multiple, Distributions to Total Value (DVTV) and Residual Value to Total Value (RVTV).
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Private Equity Asset Class Performance
11 mins 1 sec
The private equity (PE) asset class is notoriously opaque, when it comes to divulging information about the performance of investments and funds. Private equity performance statistics should always be analysed with some scepticism. The two main methods to analyse private equity performance are the Public Market Equivalent method, which benchmarks against listed companies or an index; and Value Attribution Analysis, which traces the sources of value creation in an investment. Historically, the PE asset class has returned between 9 and 12% on average; and the top/bottom quartile spread is over 20%.
Key learning objectives:
Outline the key performance metrics
Understand how PME works
Understand how VAA works
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This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.
What are the key performance metrics?
Key metrics are Internal Rate of Return (IRR), Cash Multiple, Distributions to Total Value (DVTV), and Residual Value to Total Value (RVTV).
IRR has been criticised as a reliable measure because of the way it is calculated technically, which has the effect of amplifying positive investments upwards and negative investments downwards. Nevertheless, used in combination with other measures, it is still the most widely used metric.
One last technical distinction we need to make is Net IRR, the return received by limited partners (LPs) after the fund manager’s fees are deducted and Gross IRR, the return of the portfolio before fees are deducted.
How does Public Market Equivalent (PME) work?
Many LPs use PME to assess their PE portfolio. Academic studies also use this method. PME works by comparing a private equity investment to a comparable quoted company or stock market index. The method requires a lot of careful statistical adjustments.How does Value Attribution Analysis (VAA) work?
VAA looks at an individual investment and tries to break down how the value has been created, in order to get better insight into the portfolio. Value can be created by leveraging the company, by buying at a lower multiple than when selling and by growing earnings. Most investments’ value creation is a combination of these three factors and it is interesting to establish their relative weight.Join now to watch
This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.
Gavin Ryan
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