Stijn Van Nieuwerburgh

Earle W. Kazis and Benjamin Schore Professor of Real Estate, NYU

Stijn Van Nieuwerburgh is the Director of the Center for Real Estate Finance Research and David S. Loeb Professor of Finance at New York University Leonard N. Stern School of Business, which he joined in 2003. His research lies in the intersection of housing, asset pricing, and macroeconomics. One strand of his work studies how financial market liberalization in the mortgage market relaxed households’ down payment constraints, and how that affected the macro-economy, and the prices of stocks and bonds. In this area, he has also worked on regional housing prices and on household’s mortgage choice. He currently studies real estate price formation, the impact of foreign buyers on the market, and mortgage market design. He has served as an advisor to the Norwegian Minister of Finance, and has been a visiting scholar at to the Central Bank of Belgium, the New York and Minneapolis Federal Reserve Banks, the Swedish House of Finance, and the International Center for Housing Risk.

Stijn has a BA from the University of Gent (Belgium), and an MA, MSC and PhD from Stanford University.

Related Publications

Valuing Private Equity Investments Strip by Strip

We propose a new valuation method for private equity investments. It constructs a replicating portfolio using cash-flows on various listed equity and fixed income instruments (strips). It then values the listed strips using an asset pricing model that accurately captures the risk in the cross-section of bonds and equity factors.
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Valuing Private Equity Investments Strip by Strip

We propose a new valuation method for private equity investments. First, we construct a cash-flow replicating portfolio for the private investment, using cash-flows on various listed equity and fixed income instruments. The second step values the replicating portfolio using a flexible asset pricing model that accurately prices the systematic risk in listed equity and fixed income instruments of different horizons. The method delivers a measure of the risk-adjusted profit earned on a PE investment, a time series for the expected return on PE fund categories, and a time series for the residual net asset value in a fund. We apply the method to real estate, infrastructure, buyout, and venture capital funds, and find modestly positive average risk-adjusted profits with substantial cross-sectional variation, and declining expected returns in the later part of the sample.
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