Ryan McNelley, managing director in Duff & Phelps’ Portfolio Valuation practice, was recently interviewed on Venture Capital Journal about the updated VC valuation guidelines.
Under the new guidelines, “GPs are required to go through a proactive valuation process each quarter,” said Ryan. “This process called recalibration does not usually result in a change to fair value for early-stage companies. But now that the economy has gone into a downturn, GPs are required to think critically if the value of portfolio companies have changed from the last valuation reporting date,” he added.
In a recent webinar hosted by Duff & Phelps titled “Coronavirus: How should institutional investors be valuing fund interests,” portfolio valuation experts advised LPs to scrupulously review Q1 net asset values submitted by GPs. Furthermore, they also emphasized the importance of March 31 marks, as the first reporting period after the start of the crisis, however, some GPs state they do not have sufficient information to accurately adjust net asset values as of Q1.
Subscribers of Venture Capital Journal can read the full article here.
