Portfolio valuation determines the fair value of investment holdings for financial reporting purposes. Under ASC 820 (Fair Value Measurement), private equity funds, venture capital funds, hedge funds, and other institutional investors must periodically report the fair values of their portfolio investments to their limited partners.
While many asset managers perform internal "mark-to-market" analysis, investors, fund administrators, and auditors increasingly prefer independent third-party valuations to eliminate conflicts of interest and provide additional assurance.
Our team brings the perspective of VC practitioners. With experience at Signal Peak Ventures ($450M+ AUM), we understand the unique challenges of valuing early-stage, illiquid investments where traditional metrics may not apply.
Regular reporting cycles and special situations
Most funds report NAV quarterly. Independent valuations provide confidence to LPs and strengthen investor relations.
Auditors scrutinize Level 3 fair value measurements. Third-party valuations reduce audit friction and costs.
Raising a new fund? Audited track record with independent valuations strengthens your case with prospective LPs.
When presenting to Limited Partner Advisory Committees, independent valuations add credibility to your reporting.
LP secondary sales or GP-led continuation vehicles require defensible valuations for all parties.
Accurate valuations ensure carry calculations are defensible and aligned with fund documents.
Consistent methodology. Efficient delivery. Auditor-ready documentation.
We review your portfolio, understand each investment's structure, and gather relevant data—financials, cap tables, recent transactions.
For each investment, we select appropriate methodologies based on stage, data availability, and ASC 820 hierarchy requirements.
We apply market approach (guideline transactions, calibration), income approach, or backsolve methodologies as appropriate.
For complex structures, we allocate enterprise value among classes using OPM, PWERM, or hybrid methods.
We provide opinions in your preferred format—full reports, summary schedules, or specific coverage for auditor requests.
Quarterly valuations benefit from continuity. We maintain documentation and update efficiently each period.
We typically use the backsolve method (calibrating to recent financing) or comparable transaction analysis. For very early stage, recent round valuation with appropriate adjustments is common.
Level 1: Quoted prices in active markets. Level 2: Observable inputs other than Level 1. Level 3: Unobservable inputs. Most private investments are Level 3.
Yes. We work directly with your audit team to address questions, explain methodologies, and provide additional documentation as needed.
We value these using scenario analysis considering conversion triggers, caps, and discounts. The approach depends on proximity to anticipated conversion events.
Yes. We have experience with cross-border investments and understand the additional considerations for foreign holdings.
We discuss any material differences and document the rationale. Ultimately, management owns the marks—we provide independent perspective and support.
Let's discuss your portfolio and reporting needs.