News & Events

Corporate Partner Rajib Chanda was quoted in an article in BoardIQ, a Financial Times publication, titled, “Alternatives Growth Creates Headache for Boards Around Valuation.” The article discussed how the growth of asset classes such as private equity, real estate and credit in ’40 Act funds may require boards to consider valuation issues more carefully, particularly in the wake of the SEC’s Fair Valuation Rule that recently went into effect and in the context of growing economic uncertainty. With reference to valuation challenges, which can have significant implications for how ‘40 Act alternatives offerings are structured, Rajib explained that “boards are definitely very focused on it, particularly the accuracy of NAV for any period more frequent than independent review of the underlying assets.” He added that, “Valuation is an art, not a science, so most people use third-party valuation agents on a quarterly basis, then will value inter-quarter for any events that may affect value, depending on the asset class.”

To read the full article, please click here (subscription required).