Managers of alternative asset classes have several challenges
ahead of them when launching a new fund or in their day to day
management of asset classes such as private equity, venture
capital, real estate or distressed debt to mention a few. Most of
these challenges would typically relate to segregation and
independence of the manager's key functions, namely portfolio
management, risk management, compliance, valuation and
remuneration.
In our experience, the manager's
valuation obligations are probably one of the least
understood and most problematic areas which managers have to
grapple with as part of their daily operations.
The focus on valuation (of the fund's assets) was introduced
by the Alternative Investment Management
Directive (AIFMD). Prior to the introduction
of the AIFMD, life was certainly more straightforward
for the manager who was more concerned with their
portfolio management functions than worrying about the valuation of
the
