- Portfolio Valuation
Portfolio company fair values your LPs and Auditors can rely on.
- The Basics
What Is Portfolio Valuation, and Why Does It Matter?
Portfolio valuation is the periodic, independent valuation of investments held by private equity and venture capital funds in portfolio or investee companies. Under ASC 820 and IFRS 13, fund managers generally report these investments at fair value each reporting period for financial statements, LP reporting and audit purposes.
Every fund manager reports net asset value (NAV) each quarter, and the fair value of unlisted portfolio company investments is often one of the most challenging numbers in that calculation to support. These investments are generally Level 3 fair value measurements, requiring assumptions and valuation techniques rather than observable market prices.
Our investment portfolio valuation approach follows relevant AICPA guidance on the valuation of portfolio company investments and incorporates methodologies appropriate to the characteristics, stage and financial profile of each investment.
The objective is to provide a defensible, independently supported valuation that can stand up to auditor review, LP scrutiny and recurring reporting requirements.
Supports ASC 820 & IFRS 13 compliance
Defensible fair value measurements your auditors and LPs can rely on.
Built for recurring reporting
A repeatable valuation process for every quarter-end, rather than a one-off exercise.
Built by credentialed analysts
CFA- and CVA-led valuation expertise applied to each portfolio investment.
Follows AICPA guidelines
Methodology aligned with relevant AICPA guidance for private equity and venture capital portfolio investments.
- Purpose
When Do You Need Portfolio Valuation Services?
You may need portfolio valuation services when:
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1
You're a fund manager preparing quarter-end or year-end fair value marks for portfolio companies.
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2
Your auditor has questioned the basis for a portfolio company's carrying value.
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3
A portfolio company has raised a new financing round, been marked down or experienced a material change since the last valuation.
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4
You need an independent valuation to support LP reporting or a fund audit.
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5
You're establishing a valuation policy for a new fund and need a repeatable, defensible methodology.
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6
Your fund requires independent valuation support for recurring financial reporting.
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7
You need additional valuation advisory services to support complex portfolio investments or valuation judgments.
- Our Approach
Valuation Methods Matched to Each Portfolio Company
No single valuation method fits every portfolio investment. Our investment portfolio valuation approach considers the company’s stage, financial performance, capital structure, recent transactions and available market evidence before selecting and applying the appropriate methodology.
We also calibrate valuation results against relevant recent transactions where appropriate, helping maintain consistency across reporting periods.
Recent Transaction / Backsolve Method
Uses the price and terms of a recent financing round to determine the implied value of the fund's investment and underlying share classes. This approach is commonly used for early-stage venture investments.
Market Multiples - Guideline Public Company Method
Benchmarks the portfolio company against comparable publicly traded companies using relevant revenue, EBITDA or other operating multiples.
Discounted Cash Flow (DCF) Method
Uses projected future cash flows and an appropriate discount rate to estimate fair value for portfolio companies with sufficiently predictable financial performance.
Calibration
Valuation results are evaluated against relevant recent transactions and other available market evidence to maintain consistency and support the assumptions used in recurring valuations.
- How it works
How Our Portfolio Valuation Services Work
01
- Step-1
Book a call
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- Step-2
Share Your Documents
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- Step-3
Our Team Builds Each Valuation
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- Step-4
Draft Delivered
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- Step-5
Signed report
Receive a partner–reviewed, final valuation report ready to support your fund’s financial statements, LP reporting and audit.
- Advisory
Valuation Advisory Services for Investment Funds
Beyond individual portfolio marks, our valuation advisory services can support fund managers with recurring valuation processes, methodology selection and complex investment structures.
We work with PE and VC teams to develop valuation approaches that are appropriate for their portfolio, reporting requirements and investment characteristics.
Our advisory support can include:
- Portfolio valuation methodology
- Fair value measurement analysis
- Complex investment valuation
- Valuation policy support
- Recurring quarter-end valuation processes
- Review of prior valuation methodologies
- Support for auditor and LP discussions
- Pricing
Custom Pricing, Based on Your Portfolio
Pricing is quoted based on the number and complexity of portfolio investments and the scope of the engagement. Engagements can be structured for individual portfolio companies or as recurring quarterly or annual portfolio valuation services.
The final scope considers factors such as portfolio size, investment structures, valuation methodologies required, reporting frequency and the complexity of the underlying investments.
- FAQ
Portfolio Valuation Questions We Hear Most
What are portfolio valuation services?
How often do portfolio companies need to be revalued?
What's the difference between portfolio valuation and a 409a valuation?
Which valuation method do you use for early-stage versus later-stage portfolio companies?
Do you follow AICPA guidance for portfolio valuations?
Can you value an entire fund's portfolio on a recurring basis?
Do you provide independent valuation services?
Yes. Our independent valuation services are performed by CFA– and CVA–credentialed analysts and are designed to provide an objective, documented basis for fair value reporting.