MBAs dive into private investments in innovative industries
Almost 80 top MBA participants with a keen interest in finance competed in the RSM Private Equity Competition, which was organised by students in the International Full-time MBA programme at Rotterdam School of Management, Erasmus University (RSM).
* Lennert Spek is a partner at Bain & Company
This year’s competition focused on private investments in an innovative industry – the case looked into the BioTech industry, but the MBAs also learned about other new industries. “I learned a lot about the FinTech industry and the highlight was having speakers and judges who actually work in the industry,” said Maria Valdes, an MBA student from SDA Bocconi School of Management in Milan. “The event was also a great experience for networking.”
The annual RSM Private Equity Competition brings top finance talents from renowned MBA programmes around the world to the Netherlands. The two-day day event consisted of a symposium, which took place at the PwC office in Amsterdam on Friday 23 November, and the RSM Private Equity Competition on campus in Rotterdam the next day. The almost 80 MBA participants from 16 top business schools worldwide represented 32 nationalities.
Symposium speakers included Tom Kist, managing partner at Slingshot Venture; Martin Kerkhof, director at PwC; Laurens Donker and Ruben Moen, managing director and associate at ING Wholesale Banking; Ewout Prins, managing partner at Holland Venture; and Tjarda Molenaar, managing director at NVP, the Dutch Private Equity and Venture Capital Association.
On competition day, the teams worked on a private equity case in the innovative industry in several rounds. The case was partly real and partly fiction. French BioTech start-up TargEDys creates pharmacological solutions to obesity by acting on the biological pathway of the gut-brain axis. The other company in the case is Ajax Capital, a venture capital firm specialising in financing the next life science success.
The key deliverable was an estimate of the present value of 25 per cent of TargEDys and what Ajax Capital Management should bid. The analysis and presentation consisted of three parts. First, the plan for TargEDys through drug approval – by assembling a set of assumptions detailing a road map for the company as they navigated clinical trials and worked to gain approval, and estimates for cash expenditure required. Second, a comprehensive commercial strategy for the board and to translate this into cash flow estimates. And lastly, calculation of the internal rate of return (IRR) and to do so would assume that Ajax Capital Management would make an exit three to five years after completing clinical trials.
Risk analysis and mitigation
“The PE competition was an enriching experience, and the case itself was both interesting and challenging. I learned more about private equity in the Netherlands,” said Vivek Elluru from Saïd Business School in Oxford. His team won the competition on Saturday 24 November. RSM’s MBA team was the runner up. The RSM MBA team members were Tomas Gonzalez, Giannina Carbajal Ortiz, Alonso Carrillo, Seungki Kim and Jaime Lezama Elguero. Both Saïd Business School and RSM presented comprehensive analyses and solutions. Judges eventually went chose Saïd as the overall winner because of the team’s impressive risk analysis and mitigation as part of the solution. The winning team won €5,000.
The judges of the RSM Private Equity Competition were Lennert Spek, partner at Bain & Company; Chris Angelis, director of Masterdam and head of CAIA Netherlands; Youri Doeleman, managing partner at Antler Netherlands; and Peter Yilmaz, director of finance Europe and Asia operations of Amgen; Dr Solomon George Zori, assistant professor of financial accounting and valuations at RSM; Hans Haanappel, partner at Value Insights; Bernard Zonneveld, non-executive partner at Capitalmind and former international structured finance banker; Felix Zwart, research, tax and regulatory affairs at NVP; Arvind Kodikal, investment officer, private equity FMO at Dutch Development Bank; Matthieu Tak, associate transformation and restructuring at Boer and Croon; and Martin Kerkhof, director deal strategy and data analytics at PwC.
RSM Private Equity Competition
It’s the ninth time that students from RSM’s International Full-time MBA programme have organised this annual private equity competition. This 2018 event was organised by students from RSM’s International Full-time MBA Class of 2019. The event brought together top MBA finance talents from around the world. They network with fellow students and industry professionals, learn how to solve a real life private equity case, and boost their individual profile.
Rotterdam School of Management, Erasmus University (RSM) is one of Europe’s top 10 business schools. RSM provides ground-breaking research and education furthering excellence in all aspects of management and is based in the international port city of Rotterdam – a vital nexus of business, logistics and trade. RSM’s primary focus is on developing business leaders with international careers who can become a force for positive change by carrying their innovative mindset into a sustainable future. Our first-class range of bachelor, master, MBA, PhD and executive programmes encourage them to become critical, creative, caring and collaborative thinkers and doers. Study information and activities for future students, executives and alumni are also organised from the RSM office in Chengdu, China. www.rsm.nl
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