Value in transparency: How Foresite Capital uses Anaplan to improve fundamental analysis and scale...
Transcript of Value in transparency: How Foresite Capital uses Anaplan to improve fundamental analysis and scale...
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8Smarter planning appsfor numbers-driven
companies
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Value in TransparencyStephen Peterson, Senior Investment Analyst – Foresite CapitalNoah Dennis, Investment Analyst – Foresite Capital
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Stephen PetersonSr. Investment Analyst
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Noah DennisInvestment Analyst
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Foresite Capital Management
*Assets Under Management (AUM) = Uncalled Capital + Fair Value of Investments as of March 31, 2016
• Growth equity healthcare• Founded in 2011• ~$1 billion assets under management• Public and private securities• All areas of healthcare: biotechnology,
pharmaceutical, medical device, healthcare services, healthcare technology
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Investment Team
Technical AnalyticsScientific ValidationClinical EvaluationRegulatory AnalysisIP Evaluation
Business AnalyticsCommercial AnalysisFinancial Analysis, Model & Valuation Deal StructuringExit Analysis
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“Deal Sourcing
Woody Allen
80% of Success is Showing Up
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Initial Screen 1,000 Financings per Year
Initial Diligence 300 Companies
Deep Diligence 80-100 Companies
New Investments20 Core Positions
~1,800 Healthcare Financings Raise $160B per Year
“Back of Envelope” Initial Screening Model
Full Financial Model
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Financial Models =
The Link between Quantitative & Qualitative Analysis
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Key Objectives • Understand true business economics
• Determine key value drivers & sensitivities
• Estimate fair range of intrinsic value today and how it will evolve
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Our Job =
Put Every Investment on a Level Playing Field
(Identify True Opportunity Cost of Capital)
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Prior to Anaplan
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Today Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
$0.0 $20.0 $40.0 $60.0 $80.0
$100.0 $120.0 $140.0 $160.0 $180.0 $200.0
Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Scenario 6 Scenario 7Scenario 8
Expected value per share
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What’s Important: Transparency & Flexibility
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What’s Important: Internal Consistency
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What’s Important: Efficiency
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Anaplan, Day 1
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Using Anaplan to Find a Solution
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