VRC Hires Managing Director to Lead Portfolio Valuations in Burgeoning European Market
Daniel Turi will continue to grow VRC’s presence in UK and Continental Europe markets.
4Q 2023 Update Middle Market Credit Spreads, Required Returns
The markets tighten further and 2024’s outlook remains cautiously optimistic.
European Private Market Update
VRC’s latest research into the European private markets reveals a narrowing trend in coupon spreads for loans amid intensifying competition, prompting a 25 bps reduction in fairway credit spread ranges, impacting yields and signaling shifts in deal dynamics for 2024.
2024 Deals Outlook and Valuation Trends
In the year ahead, expectations are for transformative deals by increased cross-border activity, a positive private equity outlook, ESG considerations, global tax changes, and more.
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.
Navigating Startup Financing: Insights Into Venture and Growth Equity in Challenging Markets
A broad overview of the industry, financing terms, valuation considerations, and exit options in a challenging market.
The Private Loan Market is Offering Incentives for Sustainability Achievements
Focusing on the influence of ESG on private company valuations and strategic choices.
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.
Navigating the Choppy Waters of Private Equity
When looking at 2023’s PE landscape, the turbulence is clear. In exploring key trends, challenges and strategic shifts, we note that industry players are resiliently charting a course forward.
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.
The ASC 842 Lease Accounting Implementation Saga Continues
Explore the ongoing saga of ASC 842 lease accounting implementation, including its impact on private and public companies. Learn about practical shifts, clarifications, and the challenges of determining the incremental borrowing rate (IBR) as VRC offers a dual methodology approach.
Insights Into Collateralized Loan Obligations, Long-Term Intertranche Premiums
Delve into the dynamics of CLO investments as we focus on the IRR comparison between CLO equity and BB-rated CLO debt to asses the ongoing validity of long-term inter-tranche premium used by market participants.
Venture Capital Down Rounds Reach Five-Year Highs: What Lies Ahead?
In today’s venture capital landscape, challenges persist, and companies delaying fundraising must face the reality that a near-term light at the end of the tunnel is not guaranteed.
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.
Navigating the Changing Tides of the SPAC Market Liquidation Wave
SPACs are liquidating faster than ever, and the crashing wave is changing the way investors think about their SPAC positions.
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.
Yury Govorov
Matthew McCloskey
Continuation Funds: Valuation and Fairness Opinion Considerations
A review of the continuation fund market and a growing consensus that fairness opinions are necessary best practice for the health of the market. Plus, the SEC may be requiring them soon.
The Venture Capital Cycle
Analyzing past market patterns can signal the issues private market and venture capital investors may anticipate in the cycles ahead.
Aaron Ping
John Swiatkowski
Sean McIver
Robert Mitchell
Dan Di Tomaso
Kevin Gawron
Evaluating Private Company Lease Accounting Options Under ASC 842
The holiday is nearly over for many private companies with significant right-of-use assets meaning companies will need to adopt ASC 842 effective Jan. 1, 2022, in preparation for their first calendar year-end reporting date.
Cheryl Cheng
SPAC Market Update: Who turned on the lights?
After years of hype, de-SPAC results are disappointing, stock performance has cratered, and the SEC is hitting the breaks.
Magdalena Keller
Ilya Vorobyev
Middle Market CLOs: Proven Stable Performance in Volatile Credit Markets
The history and data of collateralized loan obligations show that CLOs, in general, and middle-market CLOs specifically, continue to perform very well through various economic cycles and market shocks.
How Direct Loan Market Participants Are Handling the Handoff from LIBOR to SOFR
SOFR is emerging as LIBOR’s benchmark successor for private loan market participants. Key differences in maturity and credit profiles must be considered.
Why VRC?
Why do public companies, private equity firms, and asset managers rely on VRC for their critical valuation and advisory service requirements?
Valuing Venture Debt vs. Debt Instruments
What makes valuing venture debt investments unique compared to debt investments in more established companies?
Join the VRC Team
Watch and learn why VRC is a great place to work!
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.
Why VRC for Portfolio Valuation?
Learn why eminent private fund managers and their boards rely on our team.
Tom Gottfried
Matthew Colligan
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.
Bryson Miller
SEC to SPACs: Blank-Check Path to IPO, Warrants, Disclosures Have Liability Risk
The SEC has been clear. They will continue to keep a close watch on SPAC filings and disclosures and their private targets.
How Fairness Opinions Help Private Equity Sponsors Head Off Family Feuds
Related-party transactions between PE funds and their portfolio companies are fraught with the potential to create issues between limited partners. Fairness opinions can forestall such conflicts.
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.
Alex Clark
Subu Parmeswaran
Andrew Miller
SPAC Shares Are Not Created Equal
How do you value a SPAC? With a surge in SPAC IPOs resulting from the COVID-impacted economy, SPAC valuations should not be given equal consideration.
Jeffrey DeLorenzo
Private Equity & Debt Capital Markets Adjust to the New Normal
As we head into Q4 2020, the new normal in private capital markets has fully set in, generally defined by prudence and caution, albeit a work in progress.
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.
Garrett Sullivan
SEC Requires Third-Party Fairness Opinion Certificate for BDCs
The SEC recently announced, as a response to COVID-19, they will provide temporary exemptions to BDCs to issue and sell senior securities.
Private Credit Managers Grapple with Growing Pains
As private credit manager valuation leaders scrutinize how to optimize their internal teams, they also are leveraging technology tools and third-party service providers—both domestic and offshore—to meet the demands of scale.
Sarit Rapport
Pablo Alfaro
Understanding Collateralized Loan Obligations
CLO vehicles are the lifeblood that helps keep the syndicated loan market humming.
Dwight Grant
Private Credit Players Taking AICPA Guidelines, Growing Market Pressures In Stride
Market participants embrace best practice guidance, adjust policies accordingly. But the AICPA’s best practices are not without challenges and intricacies for the private debt and private credit professional.
Leveraging MSO Structures To Infuse PE Investment In Physician Practices
Private equity investor interest in the physician practice sector has been gaining steady momentum.
Lucy Lee
How to Win Your Fantasy Football League? Use Valuation Methodologies!
Want to crush your fantasy football championship? Take a page out of a valuation professional’s playbook.
Valuing Private Equity & Private Debt
Private equity and private debt investors are acutely focused on new AICPA Guidance that recommends a “calibration” approach for valuing private securities.
Charles Paraboschi
Valuation Takeaways From Market Volatility Spikes
Market volatility spikes prompt considerations of appropriate methodologies for factoring market indications into valuations and reflection on when “smoothing” techniques should be employed.
Sanjay Chandran
ASC 842 Lease Accounting: Simplifying the Incremental Borrowing Rate Debacle
Implementation of the ASC 842 lease accounting standard is putting companies in a challenging position to determine their applicable incremental borrowing rate.
Private Equity & Venture Capital Valuations
How did a roomful of credit managers learn to stop worrying and love the AICPA Private Securities Valuation Guide?
Podcast: Tax Reform’s Impact on Valuation
Nearly a year since the Tax Cuts and Jobs Act was signed, there are still a number of questions about how to apply the new law but some areas, such as valuation, are beginning to get some clarity.
Oil & Gas
VRC provided a required valuation of tangible and intangible assets for a Master Limited Partnership (MLP) client in support of a purchase price allocation. There were no detailed fixed asset records; VRC needed to overcome significant data limitations.
Financial Sponsor: Hedge Fund
A hedge fund client held convertible note in a company that restructured outstanding debt. As part of restructure, the note was exchanged for two separate Term Loans.
Devon Martineaux
Accounting and Valuation Conference Tackles Critical Issues for Credit Funds
Ahead of an uncertain 2018, senior VRC professionals provided their insights regarding trends in accounting, valuation, taxes and other industry practices.
Michael Park
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.
Christopher Walling
Jason Storbeck
Steven Schuetz
Caroline Puiggali
Shane Newell
Kevin Meyers
Ryan MacLean
Adrian Lowery
Anthony Law
Justin Johnson
Paul Hultgren
Jason DeFazio
John Czapla
Scott Crockett
Paul Bourke
Jeffrey Birnbaum
John Bintz
Portfolio Valuations
Valuations for all types of hard-to-value illiquid or non-marketable securities including level 3 securities, loans, bonds, equity & structured products
Amir Alerasoul
Paul Balynsky
Technology
A private equity sponsored cloud based provider of manager content, enterprise lending services granted certain management incentive units to participating executives, as compensation to incentivize management performance.
Valuation Q&A for Business Development Companies
Once we understand a BDC’s investment thesis and portfolio, VRC focuses on the valuation process.
Financial Sponsor: Hedge Fund
A shareholder of a closely-held hedge fund was not receiving the appropriate level of compensation per agreement with the controlling interest shareholder.
Valuing Carried Interests
The asymmetric nature of carried interests requires the consideration of a range of scenarios.
The ABCs of BDCs: Private Debt and SEC Concerns
Business development companies, or BDCs, represent a growing class of relatively large, closed-end, SEC-registered funds.
Common Valuation Issues With Illiquid Securities
Nuanced securities typically contain options and market conditions that alter cash flows over the life of the security and raise valuation challenges.
Brands: Food & Beverage
A leading manufacturer of branded food products engaged VRC to estimate the fair value of certain intangible assets acquired in a business combination.
Fair Value Pricing: How Directors Can Avoid Material Risks
Valuation specialists must be prepared to defend the choice of valuation methodology, assumptions, and judgments to those who depend on valuations.
Finding the Value of BDCs
The board of directors of a BDC has the ultimate responsibility to ensure the fund’s portfolio represents fair value.
Professional Services
VRC was asked by the attorneys representing the seller to provide multiple common stock valuations on a retrospective basis that would withstand a Big 4 audit review under tight deal closing deadlines.