Coronavirus Pandemic and Public Market Volatility – Impact on Valuing Investments in Private Debt and Equity

As we approach the end of the first quarter of 2020, investment fund managers and investors in non-traded or infrequently traded debt and equity investments have a fiduciary duty to report independent and credible fair value information to investors and stakeholders. This process is complicated by the rapidly changing global health situation due to the coronavirus (COVID-19). Given the uncertainty demonstrated in the public markets and the unknown ultimate impact of COVID-19, using informed judgment to measure the fair value of investments will require even more thought and analysis.

Please join us for a discussion on how best to reflect the impact of COVID-19 on measuring and reporting fair value for the March 31, 2020 quarter end.

Originally presented on March 18.

Duration: 1 hour

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Topics

• What impact will COVID-19 have on fair value estimates at March 31, 2020?
• How are market participants transacting in times of increased uncertainty?
• How are value drivers impacted by the epidemic (revenue, cost, growth, competition, market conditions, etc.)? 
• Should projections be updated and what is the impact on fair value if they have not been updated?
• How much weight should be placed on observable market transactions and public market volatility?
• What are the short, medium and long-term impacts of a market disruption on the business and operations of an investee company?

Speakers

• David Larsen, Managing Director, Portfolio Valuation, U.S.
• Ross Hostetter, Managing Director, Portfolio Valuation, U.S.
• Ryan McNelley, Managing Director, Portfolio Valuation, EMEA
• David M. Scott, Managing Director, Alternate Asset Advisory, U.S.
• Ross Prindle, Managing Director, Real Estate Advisory Group, U.S.

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