Valuation of Illiquid Assets Remains a Concern for Investors #hedgefunds #privateequity #realestate #duediligence #riskmanagement #forensicaccounting #compliance #rias #fundadministrators #auditors #datascience #AI #venturecapital #duediligence #odd #operationalduediligence #fraud #riskmanagement #infrastructurefunds #investmentbanks #mergers #acquisitions U.S. Securities and Exchange Commission U.S. Department of Labor OCIO Public Company Accounting Oversight Board (PCAOB) #primebrokers #investors #intervalfunds #Barrons #WallStreetJournal #GlobalCustodian The Wall Street Journal Barron's Financial Times Financial Conduct Authority CNBC #privatecredit #CCO #ChiefComplianceOfficer #CFO #ChiefFinancialOfficer
Harsher Glare on Private Equity Valuations According to #privatefundcfo.com the accuracy and frequency of private equity asset pricing is becoming a bigger issue for investors. The valuation of illiquid investments remains a concern. The #ChiefFinancialOfficer is typically the honest broker in these matters and should be ensuring that the pre-exit valuation process for illiquid investments follows a logical and standardized process. This process should include: 1. Review and Memorialization of the Initial Valuation Model and Inputs 2. The regular review of the model and inputs and the changes to initial valuation 3. The back testing of all exits against the historical time series of interim valuations/marks. This is a key element of the valuation process that many CFOs overlook. This will tease out any valuation bias that the deal teams night have. Bias can be the tendency to be conservative or aggressive with one's "marks." This creates the opportunity to improve the interim valuation process when you see and study the reasons why material differences existed between the exit value and the interim values. And the answer should never be we are conservative or aggressive. Contact me at John Phinney to discuss how Convergence Inc can help you establish and maintain an independent and best practice valuation process. #hedgefunds #privateequity #realestate #duediligence #riskmanagement #forensicaccounting #compliance #rias #fundadministrators #auditors #datascience #AI #venturecapital #duediligence #odd #operationalduediligence #fraud #riskmanagement #infrastructurefunds #investmentbanks #mergers #acquisitions U.S. Securities and Exchange Commission U.S. Department of Labor OCIO Public Company Accounting Oversight Board (PCAOB) #primebrokers #investors #intervalfunds #Barrons #WallStreetJournal #GlobalCustodian The Wall Street Journal Barron's Financial Times Financial Conduct Authority CNBC #privatecredit #CCO #ChiefComplianceOfficer #CFO #ChiefFinancialOfficer https://lnkd.in/eJHhSYyu