Fair value: We wrote in our May issue about this crisis being the first true test of the mark-to-market framework for private equity, as it hadn’t been universally adopted by the time the Great Financial Crisis hit. The story linked above was based on research by Wellershoff & Parnters’ Cyril Demaria, who in this guest column doubles down on the argument that it’s time to do away with the idea that listed markets are the right reference for pricing assets.
In a survey by Gen II Fund Services of 150 of its sponsor clients in April – mainly buyouts firms – 80 percent of respondents said they were going to use pubic market comps “in conjunction with other metrics” for their March 31 marks, with some 5 percent saying they were going to primarily use pubic comps. More on that soon.
Fund admin: From Private Equity International’s Fund Administration 2020 special report, Louise Fordham outlines four key trends in fund administration.
Email prepared by Graham Bippart