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Windeye Partners has many years of experience working with private equity groups and family offices and performs valuations for financial reporting and other purposes. To discuss our valuation services please email us at windeye@windeyepartners.com or contact Michael Guthammar on telephone (929) 223-2935.
Valuations of either individual private equity or debt securities or of portfolios comprising such securities may be undertaken for purposes of potential transactions, tax reporting or financial reporting. For transaction and tax reporting purposes the Fair Market Value standard (IRS Revenue Ruling 59-60) will normally be applicable, while for financial reporting purposes the Fair Value standard would normally be used. Fair Value financial reporting for investments is generally not required for privately held entities, and cost basis is frequently used, but Fair Value financial reporting is increasingly requested by institutional investors and encouraged by industry associations. For registered investment companies under the Investment Company Act of 1940, a fair value determination is required when a market quotation is not available for an asset.
Fair Value is defined in ASC Topic 820 (formerly SFAS 157) as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” Given that private equity and debt securities will typically be Level 3 assets arriving at their value can often be challenging, and companies and investment managers therefore often use independent valuation experts for this work.
For further details regarding private security and portfolio valuations we recommend that you consult the International Private Equity and Venture Capital Valuation Guidelines.