Chad Rucker in Private Funds CFO

Valuations and Legacy Funds

By: Chad Rucker

New York, NY (September 30, 2022) Chad Rucker, senior managing director specializing in fairness and solvency opinions with Valuation Research Corporation, published “Closing Legacy Funds and Side Pockets: How Valuation Can Facilitate Closure” in Private Funds CFO.

“Managers are increasingly looking to third-party providers to help value these assets with the aim of transferring them in a GP-led secondary deal,” Rucker writes.  “…. In most instances, there are long-term benefits to managers outweighing the costs. Winding up legacy assets can remove drag on the internal rate of return and general performance while freeing up capital.”

In the article, Rucker also touches on the SEC’s proposed rulemaking under the Advisers Act of 1940 that requires managers transferring assets to get independent valuation opinions under many circumstances.  Last spring, Rucker and VRC CEO Justin Johnson co-authored an article in Private Funds CFO detailing that proposal.

Read the full article at Private Funds CFO. {Note, a subscription or registration may be needed to access the piece.}

About VRC

Valuation Research Corporation is a full-service, independent, global valuation firm. Since 1975, our network of over 1,400 valuation professionals, which includes VRC’s 250 U.S.-based colleagues, has provided objective, supportable conclusions of value to domestic and international clients. VRC has locations in Atlanta, Boston, Chicago, Cincinnati, Dallas, Milwaukee, New York, Princeton, San Francisco, and Tampa; as well as international member firms operating as VRG in Argentina, Australia, Brazil, Canada, China, Colombia, Germany, India, Israel, Japan, Luxembourg, Mexico, Singapore, Spain, and the United Kingdom.