Understanding Portfolio Valuation
The independent valuation of private equity portfolios meets regulatory, accounting and reporting requirements.
Measuring the value
Portfolios are valued at "fair value" in accordance with the recommendations published by the International Private Equity and Venture Capital Valuation Board (IPEV), which brings together the private equity industry (notably the European Private Equity and Venture Capital Association ("EVCA"), the Association Française des Investisseurs en Capital ("AFIC") and the British Venture Capital Association ("BVCA")).
In estimating the fair value of an investment, the valuator must apply appropriate technique(s) in light of the nature, conditions and circumstances of the investment and must use current and reasonable market and other data while taking into account the assumptions of market participants. Fair value is estimated using the views of market participants and market conditions at the measurement date, regardless of the valuation techniques used.
How can we help you?
The mastery of investment evaluation has become more and more complex. It requires the expert to be multi-task, i.e. :
- Master the regulatory requirements (AIFM Directives)
- Be fully aware of the good practices in evaluation (IPEV recommendations)
- Be able to provide innovative tools for collecting and processing volumes of data
- Ensure professional and independent judgment
The independent expert must also set up a valuation procedure.
Why Olifin?
Brice Palayer is the founder of Olifin. He has served in prestigious institutions (KPMG Corporate Finance, BNP CIB) and for the Siparex Group, one of the leading independent French private equity groups, as Head of Valuation, a position he still holds.
