Report: Valuation of Private Equity and Debt Investments Amid Market Uncertainty

As asset managers prepare for the upcoming Q1 reporting season, those with significant Private Equity and Private Debt / Level 3 exposures will be subject to heightened scrutiny as they re-value their portfolios amid public market volatility, forecasts for many portfolio companies looking much less certain and heightened concern from their LPs. Market conditions in some areas could exert considerable downward pressure on valuations, as well as magnifying the impact of any write-downs in a LP Strategy that a significant allocation to Alternatives due to the "denominator effect".

The implication is that despite the challenging environment and potential difficulty to access certain information, every investment will need additional analysis.

This point was recognized by the International Private Equity and Venture Capital Valuation Guidelines Board (IPEV) who recently issued a Special Valuation Guidance note to assist with 31 March valuations.

In this complimentary report, Leon Sinclair, Global Head of Private Equity & Debt Services at IHS Markit and Peter Alleston Asia Head of Business Development Private Equity & Debt Services highlight what asset managers should consider in re-valuating their investments.

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