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Portfolio Valuations

SRR’s professionals are experienced experts in the valuation of illiquid equity, debt, and derivative securities of private companies. Our services satisfy periodic valuation requirements for investments in portfolio companies.

Engaging a third party to perform valuations of illiquid investments is beneficial for the following reasons:

  • Results in a more robust valuation policy and conforms to best practices
  • Provides the Board of Directors with another input into its determination of fair value
  • Independence
  • Provides greater consistency and transparency
  • Fulfills lender requirements for securities-based lending
  • Provides experience in the application of required valuation framework and with illiquid securities
  • Satisfies the increasing scrutiny of fair value conclusions by investors, auditors and the SEC
  • Allows investment professionals to focus on core investment oversight responsibilities

Our professionals have wide-ranging experience in assisting fund managers in developing supportable fair value measurements in accordance with ASC 820 for multiple illiquid security classes, including:

Asset Classes 

  • Senior and subordinated debt
  • Unitranche loans
  • First out/last out term loans
  • Convertible debt
  • Preferred stock
  • Common stock 
  • Warrants and options
  • Hybrid securities
  • Fixed income derivatives
  • Interest rate derivatives 
  • Structured products
  • Financial guarantees

Our portfolio valuation services are applicable for entities seeking an independent, third-party valuation of illiquid securities.  These valuations can be conducted for both regular reporting requirements and unplanned valuation needs.  SRR has strong relationships with major accounting firms who review our methodologies and reports which enable clients to navigate the audit process smoothly.

Types of Clients

  • Public and Private Business Development Companies (“BDCs”)
  • Co-investment funds
  • Collateralized debt obligations
  • Collateralized loan obligations
  • Private equity
  • Hedge funds
  • Private debt funds
  • Insurance companies

Our portfolio valuation services have proven to be effective for a wide range of clients. 

Benefits of SRR

  • Senior-level attention
  • Comprehensive industry expertise
  • Complex Securities Group -- the Portfolio Valuations Group works closely with the Complex Securities Group to maintain the most up-to-date and efficient methodologies available
  • Well-supported fair value conclusions that comply with the relevant reporting standards and are capable of withstanding third-party scrutiny
  • Independent and well documented valuations