Backtesting to Satisfy SEC Valuation Rule

VRC weighs in on the rule’s flexibility, explaining the onus is on the mutual fund board to lay out the valuation process, or its designee.

European Private Market Update

While the European private debt market faces heightened competition, deal flow is expected to improve in 4Q 2023 and early 2024 as market participants anticipate and more accessible fundraising environment and improving market conditions.

How Private Lenders Treat Discounts on New Loans

Through an informal survey, VRC identified a discernible preference for treating the OID as incremental yield consideration and amortizing it over the life of the loan, though that approach is by no means uniform.

How Private Borrowers Are Holding Up Against Persistent Inflation, Earnings Headwinds

A close look at private debt markets shows many borrowers need more wiggle room and are counting on a reversal in short-term rates or more forbearance from lenders.

Handling Sustainability Triggers in Valuation

The use of SLLs is becoming widespread, but pricing and valuation can be complex.

Rucker and Expert Panelists Dig In To Rapidly Growing $72 Billion GP-Led Secondaries Market

After a modest slowdown in late 2022/early 2023, GP-led secondaries market is picking back up.

2Q 2023 Update: Middle Market Credit Spreads, Required Returns

Improving sentiment from market participants, private equity sponsors, and direct lenders has led to further tightening in syndicated credit spread quarter-over-quarter.

Valuing Venture Debt vs. Debt Instruments

What makes valuing venture debt investments unique compared to debt investments in more established companies?

With Greater Liquidity Comes Greater Private Asset Valuation Frequency

The new buzz phrase—”monthly valuation”—is taxing internal valuation teams and redefining relationships between fund sponsors and valuation providers.

Resource Guide to Navigating SEC Rule 2A-5

VRC’s Rule 2a-5 Resource Guide provides the details fund managers and fund boards need to come into compliance with the SEC’s new regulations to fair value portfolio securities.

Best Practices for Private Fund Sponsors

As the demand for transparency rises for private investment funds, the spotlight is on valuation practices, which is essential for any fund manager to understand.

BDC Roundtable Participants Lean Heavily on VRC’s Czapla for Guidance on Navigating COVID Fallout

Business Development Company market participants are focused keenly on valuation in the wake of the novel coronavirus and the impact on their underlying portfolio investments.

Rollover Equity: Don’t Just Take It At Face Value

Several factors, including the rights and preferences of the rollover equity compared to the private equity sponsor’s shares and the sources of deal financing, have important implications for valuation.

Financial Sponsor: Private Equity

A technology company was purchased by large private equity investor. With the purchase price set, the new entity was capitalized with debt and three different types of equity securities.