Capstone – Project Charter

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.

Host Venue Address

  • West Hartford, CT, we are still in midst of signing Regus contract.

REQUIRED PREREQUISITES

  • Familiarity with fund proposed investment process (fund pitch), FASB Topic 946 (accounting for investment companies), cost accounting methods versus Level 3 treatment (ASC 820), all will be provided.

LEARNING OBJECTIVES

  • Students will gain insight into how regulatory frameworks shape the operating procedures of companies (not just a PE fund).
  • They will learn what the finance operations of a company or fund must deal with when considering asset/liability questions that require a process to determine their treatment and valuation.  FASB and ASC guidelines, regulatory inputs, and desired internal Financial Planning & Administration outcomes (financial reporting versus management reporting)
  • Sarbanes Oxley and Dodd Frank impact on financial companies & funds
  • How to design operational processes to ensure proper control of cash, balance sheet values, and reporting.  Utilizing best practices and COSO (Committee of Sponsoring Organizations) framework.

Company Information

CompanyRadium
HQConnecticut
RevenueUnlisted
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.

Company Supervising Team

CEO and co-founder

Brian

[email protected]

Course Info & Engagement Details

SchoolUniversity of Notre Dame Mendoza College of Business
Engagement FormatCapstone - Small Team Consulting Project - Students work in small groups of 2-6 directly with faculty and host company project champions on developing real solutions to real-world challenges.
ProgramCollege of Business
Course2019 FALL – MBA Interterm (APPLY)
Level
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
Duration4 days (10/15/2019 - 10/17/2019)
Departments InvolvedLegal, Regulatory, Compliance
Reporting, Financial Planning & Analysis
File Attachments

School Supervisors

Instructor

Alice

[email protected]

Students

There are currently no students assigned.

Collaboration Timeline

  • August 29, 2019

    Finalize Project Details and Legal Documents – We’ll help build to project and ensure it’s appropriate for a group of MBAs to complete over a one-week period.

  • September 13, 2019

    MBAs Select Projects – Students rank their top three projects and are assigned based on their backgrounds and skillsets.

  • September 30, 2019

    Students are Provided Background Information – Students begin to ramp up for the engagement

  • October 14, 2019

    STUDENTS ON-SITE: KICKOFF MEETING – Students begin to work on the project. Company introduces key personnel and answers questions about the business model and project.

  • October 16, 2019

    STUDENTS ON-SITE: WORKING WITH DAILY CHECK-IN

  • October 16, 2019

    STUDENTS ON-SITE: WORKING WITH DAILY CHECK-IN

  • October 17, 2019

    STUDENTS ON-SITE: FINAL PRESENTATION

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 investment 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 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