Yann Robard, founder of Dawson Partners, details how his secondary investment firm uses AI and machine learning across its fund pricing process.
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“We're using that AI to scrape data and coming out of PDFs into our models. And that allows us to avoid or at the place of using our resources for manual input, you're using it for actual analysis because the data is already in.”
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More from Yann Robard
PredictionOpen · timeframe Dec 2031
The private capital secondary market will reach $1 trillion by 2031
“I'm on the record for saying that the secondary market is going to get to a trillion dollars by 2031. Whenever I say that, the first reaction is, you're crazy. And I've heard that a few times, I guess, in my career. But I have a deep conviction around this pre…”
Yann RobardJun 17, 2024▶ 51:50Yann Robard - Liquidity Solutions for Private Capital at Dawson (EP.392)
AssertionSupported
PE exits average a 28% valuation pop over prior carrying value
“What we did was we went back to 2005 to 20 22, and we looked at over a thousand companies, and we asked ourselves, when a private equity company exit, what does it exit at relative to what it was carried at two quarters prior? And the answer is, it pops 28%. S…”
Yann RobardJun 17, 2024▶ 25:58Yann Robard - Liquidity Solutions for Private Capital at Dawson (EP.392)
AssertionSupported
PE IPO exits average a 42% pop versus 25% for M&A
“On exit, M&A on average is 25%, and IPOs are 42%, POPs, which would suggest that public markets pays more for assets on the exits than M&A does, corporates.”
Yann RobardJun 17, 2024▶ 28:12Yann Robard - Liquidity Solutions for Private Capital at Dawson (EP.392)
Disclosure
Dawson takes 100% of cash flows until hitting a 1.3x multiple
“What we do is that we give 60, 70% of the value of the portfolio. We'll take a hundred percent of the cash flows from that portfolio until we get to, let's call it a minimum return of a multiple, one, three, one, four, or eight to 10%, and then we'll split cas…”
Yann RobardJun 17, 2024▶ 33:23Yann Robard - Liquidity Solutions for Private Capital at Dawson (EP.392)
PredictionOpen · timeframe Dec 2030
The private capital market will grow to $30 trillion by 2030
“If you think about a 15 trillion dollar private capital market that's going to grow to 30 trillion by 2030, our opportunity is to inject liquidity into that market.”
Yann RobardJun 17, 2024▶ 35:22Yann Robard - Liquidity Solutions for Private Capital at Dawson (EP.392)
Insight
Successful financial market innovation requires evolutions rather than revolutions
“The interesting thing about these markets is that you need to be half a step ahead of the market, but you can't be a full step ahead of the market. It's really interesting. Markets need evolutions, not revolutions. So one of the things that I learned while I w…”
Yann RobardJun 17, 2024▶ 16:28Yann Robard - Liquidity Solutions for Private Capital at Dawson (EP.392)
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