Valuation Updater

Overview

The Valuation Updater skill supports periodic marking of portfolio positions to fair value in accordance with ASC 820 and IPEV guidelines. It ensures consistent, defensible valuations for fund reporting and LP communications.

Capabilities

Fair Value Assessment

• Assess fair value using multiple approaches
• Apply appropriate valuation methodologies
• Document valuation rationale
• Support valuation committee process

Methodology Application

• Apply market approach (comparables, transactions)
• Apply income approach (DCF where appropriate)
• Use calibration from recent rounds
• Handle convertible instrument valuations

Documentation Generation

• Generate valuation memos
• Document key assumptions
• Support audit requirements
• Maintain valuation audit trail

Portfolio-Level Review

• Aggregate portfolio valuations
• Calculate NAV impacts
• Track valuation changes over time
• Identify outliers for review

Usage

Update Company Valuation

Input: Company data, recent developments
Process: Apply valuation methodology
Output: Fair value estimate, documentation

Apply Calibration

Input: Recent transaction, prior valuation
Process: Calibrate to new price point
Output: Calibrated valuation, back-test

Generate Valuation Memo

Input: Valuation analysis, assumptions
Process: Create documentation
Output: Valuation memo for audit/committee

Review Portfolio Valuations

Input: Portfolio-wide valuation data
Process: Aggregate, identify issues
Output: Portfolio valuation summary

Valuation Hierarchy

Integration Points

• Quarterly Portfolio Reporting: Valuation for reporting
• Waterfall Calculator: Values for distributions
• KPI Aggregator: Company data for valuation
• Fund Accountant (Agent): Support accounting

Valuation Methodologies

Best Practices

1. Follow ASC 820 and IPEV guidance
2. Use calibration as primary method where applicable
3. Document all significant assumptions
4. Maintain consistent methodology application
5. Support audit with complete documentation