David Larsen, Managing Director in Duff & Phelps Alternative Asset Advisory practice, was recently quoted in the second part of a three-part Private Equity Law Report article titled, “Independent Valuation Firms: Rising Prominence of Third-Party Valuations and Factors to Consider When Engaging a Firm.”
LPs are very dependent on ongoing valuations of a PE fund’s portfolio for monitoring a GP’s performance and raising issues as needed. Although most PE sponsors calculate their own funds’ valuations, an increasing number of managers are taking the extra step of hiring an independent valuation firm to assure investors and regulators that those valuations are unbiased. Independent valuation services can be very costly and take a lot of forms, however, so choosing the right firm and negotiating an appropriate scope of work is key to any effective engagement. This article delves into the rise of independent valuation firms, different scopes of work and ways managers can choose the right firm to conduct valuations.
Read the full story here.
