Capstone – Project

Design of accounting valuation protocol for PE fund with unique assets

A Collaboration Between

Engagement Synopsis

Create a FASB compliant accounting & valuation methodology and process for a private equity vehicle containing level 3 assets. The assets are investments in lawsuits the cost of which is funded by the PE fund. Develop a ‘Policy and Procedures’ document with clear delineation regarding roles and responsibilities. The Work Product needs to include rationale and recommendations based on the milestones below.

Company Information

CompanyRadium
HQConnecticut
Revenue10,000,000 - 50,000,000,
Employees5-10
StagePre-Revenue Startup
Hiring PotentialFormal Internship, Entry Level Full-Time
Websitehttp://www.radiumfundllc.com

Company Overview

Securities litigation is a very unique subset of litigation finance and is NOT understood by today’s litigation funders; a new team is needed. Radium’s founders have decades of experience in securities litigation, investments, and risk management. In the last five years, nearly 1/3rd of the $23 billion U.S. securities litigation recoveries have gone to lawyers, not shareholders. Radium is upending the status quo to ensure that shareholders and fiduciaries in global securities litigation gain the majority of the benefit as the process was intended. Radium works with and for the shareholders – filling the roles that lawyers and others utilize to charge unconscionable success fees which can result in less than half the money making its way back to the claimants. Radium’s model involves working in co-ordination with the largest shareholders to evaluate and pursue appropriate claims with experienced, seasoned AM 100 attorneys, while minimizing the impact on their day-to-day obligations of serving their clients.

Industry Mentors

There are currently no supervisors assigned.

Course Info & Engagement Details

SchoolMasters in Business Administration (MBA)
Engagement Format -
CourseMBA APPLY Interterm (FALL 2019)
LevelGraduate
Students Enrolled120 Enrolled, 4-5 per group per project
Meeting Day & Time10/14 - 10/17/2019 on-site at host company
Student Time Commitment1-3 Hours Per Week
Company Time Commitment3-5 Hours
Duration0.43 Weeks

Project Topics

Legal, Regulatory, Compliance

Reporting, Financial Planning & Analysis

Academic Mentors

There are currently no supervisors assigned.

Assigned Students

There are currently no students assigned.

Program Timeline

Touchpoints & Assignments Due Date Submission

Key Milestones & Project Process

  • October 15, 2019 - Outline Radium's New Fund's Investment Process

    • Establish Investment Criteria & Eligibility, Including:
      • Type of Investments
      • Required Documentation
      • Minimum Expected Return Requirements
      • Maximum Expected Recovery Horizons
    • Map Out Underwriting Process
      • Radium’s Responsibility
      • Valuation Methodology – how ‘Assets’ are Valued
      • Assumptions – Basis for Valuation
      • Contract terms, Case description, Parties Involved
    • Investment Approval Process
      • Radium’s Responsibility
      • How are investments approved?
      • Pricing Methodology – How are Investments Priced (including potential full value, and value realization date)
    • Risk Management
      • Radium’s Responsibility
      • Frequency
      • Asset Re-Valuation – How, Why and When
        • Key Legal Milestones
        • Impairment Process
        • Final Value
    • Settlement Process
      • Radium’s Responsibility
      • Approval
      • Allocation of Proceeds
      • Oversight

    Suggested Deliverable:

    Outline Radium’s New Fund’s Investment Process

  • October 16, 2019 - Establish Radium's Operations Flow

    • Cash Movement and Banking Relationships
      • Radium’s Responsibility
      • Approval Process
    • Capital Calls
      • Radium’s Responsibility
      • Approval Process
      • Hiring, Reviewing, and Paying Third-Party Advisors/Vendors
      • Other Cash Flows
    • Controls – How do you Validate the Process
      • Control/Reporting/Disclosure (valuation input for assets)
      • Oversight procedures
      • Internal Audits
      • Establish Reporting Process that reflects Management accounting of the fund, including:
        • Database/Spreadsheet with input controls showing the status of every asset
        • Include current accrued value, expected accrued value, expected final value, current return, expected return.

    Suggested Deliverable:

    Outline Radium’s Operational Process Overview for their new Fund

Project Resources

There are no resources currently available