VRC Chairman John Czapla and Senior Managing Director, Business Development Parag Patel were featured in Private Funds CFO discussing valuation considerations for evergreen fund structures.

The article, “A High Bar for Evergreen Valuations,” examines the operational and valuation challenges sponsors face when launching semi-liquid evergreen funds, including tighter reporting timelines and the need for disciplined valuation processes.

Patel noted that proactive planning is essential for meeting compressed valuation deadlines, “It’s imperative for a GP client to have processes and procedures that are planned well.” Czapla highlighted how VRC structures its workflow to accommodate evolving information sets while maintaining valuation discipline, saying, the firm uses “cut-off dates for receiving data, and it builds in a subsequent buffer time to receive newer information and determine whether it is material.” He also noted that valuation processes must remain adaptable. When clients deliver new information or market volatility they determine has resulted in material changes, VRC works with them closely as valuations may need to be updated to reflect current conditions.

The discussion also addresses the operational demands of daily or frequent valuation cadences required by certain evergreen fund structures and how statistical analysis can support those processes.