ASC Topic 820 provides guidance on how entities should measure and disclose fair value in their financial statements. Fair value is defined in ASC Topic 820 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.” Fair value, as defined under ASC Topic 820, focuses on an exit price.
The implementation of ASC Topic 820 and the need to provide investors with transparency on a timely basis, has spurred many alternative investment fund managers to bring in third-party valuation experts to value their assets or review their internal valuation work. The valuation of illiquid securities (typically Level 3 assets) can be a particularly challenging project depending on the assets and the time available.
We offer strong experience valuing alternative investments on behalf of hedge funds, private equity firms, venture capital funds and family offices. With almost 30 years of experience, we have valued all levels and types of equity-related investment assets, debt securities (including performing loans, distressed debt, CMBS, RMBS, CLOs) and real estate. In recent years, we have undertaken valuation engagements for clients ranging up to 60 assets per quarter on behalf of funds with $100 million - $1 trillion in AUM. These engagements require high-quality review and analysis with the ability to work within short timeframes to meet filing and reporting deadlines. Our approach to using teams of analysts that remain consistent from quarter to quarter allows the process to flow smoothly and reliably for our clients.
Much of our business approach is derived from repeat clients who appreciate our value proposition: optimal client service, details and deadlines; strong industry, SEC and IRS experience; thought leadership; easy-to-work-with professionals and a competitive fee structure. Our commitment to accuracy and transparency enable us to produce reports that are reliable, credible and dependable.
We tailor our services to provide the right level of assurance for each fund client. These services run the gamut from full valuation opinions and “positive assurance” concerning a fund’s analysis to “negative assurance” letters indicating the fund’s values are not unreasonable.
We work interactively with fund clients to understand each asset’s current standing and outlook, explain our thinking and methods, arrive at conclusions based on those and other inputs, and produce comprehensive and reliable reports.
We have conducted hundreds of technical valuation reviews over the years with the Big Four accounting firms, major regional audit firms and the SEC. We have the experience to know what is required to facilitate these reviews and effectively respond to questions.