2022 Year End Valuation Matters

With year-end around the corner, we have seen a significant uptick in requests from alternative investment funds with valuation needs. Many of our recent inquiries have been in connection with the following:

• Independent valuations for portfolio companies with “stale” marks (12+ months since investment was made or a subsequent round was raised).
  • Many funds are anticipating auditor scrutiny of these “stale” marks, especially due to this year’s market volatility.
• Valuations of Funds’ Portfolio Companies, Debt Instruments, and/or other securities held by the funds for Q4 Reporting purposes.
  • Many funds that previously valued their positions internally have decided to outsource the valuation function to CLA (i) based on their auditor recommendations to utilize an independent third-party valuation provider, and/or (ii) in order to focus their efforts elsewhere.
• Our “positive assurance” service, where we independently review assumptions, valuation methods, and conclusions to determine that a funds’ internal valuations are “reasonable.”
  • Investors, auditors and administrators appreciate the independence, and it supports the audit process as we can answer auditor questions.

CLA is here to help funds follow best practice guidelines should they have any valuation needs

How we can help

CLA’s valuation professionals are experienced in helping address this valuation issue and provide peace of mind. We’ll help provide the resources you need to implement a practical plan designed specifically for your situation.