Fair Value Best Practices and Implementation
Overview Given the difficulty of valuing illiquid assets and the potential for conflict of interest, hedge funds, private equity firms, and other investment managers and financial institutions (“Asset Management Firms”) are receiving greater attention from regulators, investors, auditors, politicians, and other industry participants, with the trend toward a well defined and consistently applied valuation policy […]
Portfolio Valuations
Valuation of Alternative Investments Given the difficulty of valuing illiquid assets and the potential for conflict of interest, hedge funds, private equity firms, and other investment managers and financial institutions are receiving greater attention from regulators, investors, auditors, politicians, and other industry participants, with the trend toward a well defined and consistently applied valuation policy […]
AIFMD Requirements for Non-EU Managers
As of July 22, 2013, the Alternative Investment Fund Managers Directive (“AIFMD”) became effective in the European Union (“EU”). While the directive impacts an EU Alternative Investment Fund Manager (“Manager”) managing and marketing an EU Alternative Investment Fund (“Fund”) immediately, we will now take a closer look at the impact on non-EU Managers and Funds.First, […]
AIFMD – Professional Guarantee Requirement of External Valuer
With the Alternative Investment Fund Managers Directive (“AIFMD”) having entered into force on July 22, 2013, Alternative Investment Fund Managers (“Managers”) are now responsible for establishing and maintaining appropriate procedures concerning the valuation of assets in the Alternative Investment Fund (“Fund”). In addition, written valuation policies and procedures must be established to clarify valuation methodologies […]
Interest in BDCs Continues to Grow
Business Development Companies (“BDCs”), created by the Small Business Investment Incentive Act of 1980 to spur investment in smaller companies, are a type of closed-end fund that has exploded in popularity in recent years.BDCs generally make investments in private companies in the form of long-term debt or equity. Investments in thinly-traded small cap public companies […]