Alternative Credit managers frequently trade assets that require a degree of subjective judgement in the valuation process. Fair value processes for direct loans and robust credit valuation frameworks are therefore essential and this memo discusses these themes.
The Securities and Exchange Commission (SEC) has introduced new rules to address conflicts of interest when advisers offer investors the choice between selling or exchanging their interests in a private fund for interests in another vehicle managed by the adviser or related parties. In this piece, we explore the impacts of these new rules for investors and managers and highlight considerations for effective implementation.
ILS Funds typically invest in a spectrum of assets that may range from catastrophe bonds to private collateralised reinsurance structures. This memo contains detailed guidance on a robust ILS valuation framework consistent with our Alternative Investment Standards.
Jean-Francois Mauvis (former Head of ODD at Pantheon Ventures) shares his view on how ODD practitioners approach the assessment of investment manager valuation practices related to private market assets.
Nicolas Roth, Managing Director and Head of Private Markets Advisory at UBP, shares his insights on private markets from an investment practitioner's perspective.
Valuations in private markets have far-reaching implications, and concerns about their reliability have been growing among investors and regulators in recent years.
The Standards Board for Alternative Investments (SBAI), custodian of the Alternative Investment Standards, has published a new consultation paper (‘CP5’) on proposed new Standards related to valuation of private market assets.
Valuations are in the spotlight with many institutional investors scrutinising practices in private markets and some financial regulators raising concerns. The SBAI Standards and Guidance address key concerns in valuations, and our Private Market Valuation Working Group continues to explore transparency and investor disclosure practices of managers in relation to their valuation processes and procedures.
