Alternative Credit - Valuation
Where liquidity or transparency is not readily available, for example in private credit, assets will often require manager marks which can be determined via a range of different techniques. These marks will typically have validation from an independent valuation agent.
In this memo we discuss:
- What the Alternative Investment Standards say about Valuation
- What Accounting Standards such as International Financial Reporting Standards (IFRS) and US Generally Accepted Accounting Principles (US GAAP) say about Valuation
- Fair value process for Direct Loans including Enterprise Value Estimation and Financial Instrument Specific Valuation Approaches, and
- Key questions for investors to ask during due diligence processes
