Illiquid portfolio pricing valuation can be a daunting task for alternative investment firms. Accounting fair value requirements and other regulatory interventions, such as the EU’s Alternative Investment Fund Managers Directive (IFMD), are recreating best practices around the periodic reporting on the value of fund investments.

Our team at Calipro Advisors provides comprehensive support for portfolio valuation services, particularly focusing on illiquid assets and complex securities. Our valuations comply with the International Private Equity and Venture Capital Valuation (IPEV) Guidelines to ensure that our clients receive well-documented and defensible valuations. These IPEV Guidelines set out recommendations intended to represent current best practices, on the valuation of private capital investments. The IPEV Guidelines’ best practices ensure that the private capital investments are reported at ‘fair value’ and, hence, help investors in private capital funds make better economic decisions.

Calipro Advisors is adept at providing valuation services for single investments as well as full portfolios. Our experience involves working on engagements involving millions of pounds in positions across industries and investment types, such as:

• Preferred and common equity
• Debt – secured, subordinated, convertible, with prepayment clauses, etc.
• Other complex securities, such as options, warrants, and other structured securities

These valuations can be performed monthly, quarterly, semi-annually, or annually. No matter what the frequency is, our presentations and output enable you to visualise the sensitivity of key value drivers for each of your investments and enable you to see the impact on the overall portfolio including the progression of your investments over time. With our experience in different sectors as well as several product offerings, we understand the unique requirements of your portfolio investments.

Whether using the income or market approach, or employing more complex methods such as option pricing models, probability-weighted expected return models, lattice models, or Monte Carlo simulations, our team’s in-depth understanding of your portfolio will help you design the most appropriate solution for your needs. In addition, our reports can withstand some of the most stringent audit scrutiny and help our clients manage portfolios ranging from a handful of investments to hundreds of holdings seamlessly.

Contact us to learn more about our in-house tool on Monte Carlo simulations and get a sneak peek into what goes into building complex valuation models.