George Psarianos of Deloitte discusses the drivers of market valuation and valuation best practices.
“There’s really a drive to have more of a structured process around the valuation” from both regulators and LPs. In the future, the complexity of assets would create an opportunity for third party valuators. When funds perform valuations themselves, he suggested, the question is “have they considered multiple approaches, are they using the right comps, do they have sufficient industry experience with respect to the asset”.
Finally, when it comes to documentation, he asked: “what’s supportable?” Can funds reference their valuations against public records?
This video was filmed at GAIM Ops Cayman 2016, the annual meeting place for C-level alternative investing experts in operations, due diligence and compliance on the stunning Seven Mile Beach, Grand Cayman. It’s sponsored by Cordium, a market-leading global provider of regulatory compliance consulting services and software to the asset management and securities industries.