Institutional investors (fund of funds, sovereigns, public and private pension funds, endowments, family offices, insurance companies, etc.) have the fiduciary duty to report independent and credible fair value information to their stakeholders. Government actions taken in response to the rapidly changing global health situation due to COVID-19, combined with public market volatility and the potential for a global recession make the judgments reached with respect to fair value at March 31, 2020 very difficult. Many institutional investors rely on reported Net Asset Value (NAV) from an earlier time period as a starting point to estimate the fair value of a fund interest at the current measurement date. Virtually every institutional investor is faced with a critical conundrum: how do they estimate March 31, 2020 fair if their starting point is September 30, or December 31, 2019 reported NAV?
Please join us for a practical discussion on how to reflect the impact of COVID-19 and current market conditions when estimating and reporting fair value of fund interests and other investments for the March 31, 2020 quarter end.
Schedule: 12:00 p.m. to 1:15 p.m. (EDT)
- Is there a best way or required way to determine fair value of a fund interest at March 31, 2020?
- What should institutional investors expect from their managers when valuing underlying fund investments at March 31, 2020?
- What actions should an investor take if a fund manager is taking a wait and see approach to valuing underlying investments at March 31, 2020?
- How should September 30 or December 31, 2019 Net Asset Value be adjusted to be meaningful when used as a starting point for estimating fair value at March 31, 2020?
- What is the impact of the pandemic and market volatility on the valuation of co-investments and direct investments?
- What incremental due diligence questions should we be asking our fund managers?
CPE credit will be provided.