Portfolio Valuation That Holds up To Every Audit
Independent, defensible fair-value measurements for private equity, venture, and family-office portfolios built to satisfy auditors, regulators, and the investors who read your reports.
What Portfolio Valuation Actually Means?
Portfolio valuation is the exercise of assigning a defensible fair value to every holding a fund carries from listed equities to early-stage SAFEs so the total reported value reflects what a market participant would pay today, not what was paid at entry.
For private equity funds, venture funds, hedge funds, and family offices, this is not a once-a-year courtesy. Under fair-value accounting, the value of each position has to be re-measured on a recurring basis and disclosed to limited partners, auditors, and regulators. The harder the asset is to price a convertible note, a minority stake in a pre-revenue company, an illiquid structured product the more the valuation depends on judgment, method selection, and documentation that can survive scrutiny.
That is exactly where an independent appraiser earns its place. When the same team that manages the portfolio also marks it, conflicts of interest are unavoidable. A third-party valuation removes that tension and gives every stakeholder a number they can rely on.
Why ASC 820 Sets The Rules?
ASC 820 the FASB standard formally titled Fair Value Measurement defines how fair value must be determined and disclosed in U.S. financial statements. It establishes a single definition of fair value, a consistent framework for measuring it, and the disclosures that let readers understand how those figures were reached.
The standard sorts every input into a three-level hierarchy based on how observable it is. Level 1 inputs are the most reliable; Level 3 inputs lean heavily on the appraiser’s models and assumptions. A clean ASC 820 valuation is transparent about which level each holding falls into and why.
- One consistent definition of fair value across every reporting period.
- A clear framework for selecting and applying valuation methods.
- Disclosure of the fair-value hierarchy level for each position.
- Documentation auditors can test, not just accept on faith.
- Reduced restatement and audit-adjustment risk at year-end.
Level 1, 2, And 3 The Assets We Value
Portfolios rarely sit neatly in one tier. We measure across the full ASC 820 hierarchy, from screen-priced securities to the illiquid positions where most of the valuation work lives.
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Hierarchy level
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What it captures
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Typical holdings
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|---|---|---|
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Level 1
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Quoted prices in active markets for identical assets — the most observable inputs.
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Listed equities, ETFs, government bonds.
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Level 2
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Inputs other than quoted prices that are still observable, directly or indirectly.
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Corporate bonds, certain derivatives, some real-estate interests.
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Level 3
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Unobservable inputs driven by the appraiser's models and assumptions.
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Private equity stakes, SAFEs, convertible notes, illiquid structured products.
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Instruments Commonly Inside The Portfolios We Value
- SAFE notes
- Convertible & hybrid debt
- Preferred stock
- Common stock
- Warrants & options
- Structured products
- Complex derivatives
How We Arrive At Fair Value?
No single method fits every holding. We match the technique to the asset, the data available, and what a market participant would actually rely on.
Market Approach
Fair value is anchored to recent transactions and the pricing of comparable assets, reflecting what the market is paying right now.
Income Approach
We discount expected future cash flows to present value, weighing growth, risk, and an appropriate discount rate.
Cost Approach
Value is derived from the cost to acquire or reproduce the asset, adjusted for depreciation or obsolescence.
Backsolve
Using a recent financing as the anchor, we reverse-engineer the implied inputs so the model is consistent with an observed transaction.
Option Pricing (OPM)
Option Pricing and Binomial models allocate value across a layered capital structure, accounting for volatility and time.
Blended Judgment
For complex positions we weight multiple methods, documenting the rationale so the conclusion is reproducible on review.
Built For Funds That Answer To Investors
Private Equity Firms
Recurring marks on portfolio companies for LP reporting and audit support.
Family Offices
Independent fair-value across mixed holdings, free of internal conflict.
Venture Capital
Fair value for early-stage and growth positions, including SAFEs and notes.
Micro VC & Funds
Right-sized engagements for smaller funds with growing reporting needs.
Ready To Value Your Portfolio?
Organizations Entrusting Us With Excellence
 Cadence Â
Reporting On Your Schedule
We deliver valuation reports at the frequency your reporting calendar demands not on a rigid template.
- Annual : comprehensive year-end reports for audit and LP disclosure.
- Quarterly / monthly : frequent marks for active management and tighter reporting cycles.
 Governance Â
Fund Valuation Policy
Many funds operate without a formal, written valuation policy a gap auditors increasingly flag. We help you draft one.
- A documented framework aligned to ASC 820 and market practice.
- Consistent treatment across holdings and reporting periods.
- Clearer governance for both internal review and external audit.
From First Call To Signed Report
A clear, documented path so you always know what we need and when the report lands.
Reach Out
Tell us your fund size, instrument types, whether FMV is already established, and any reporting deadline.
Scoping Call
We confirm objectives, timeline, and whether the work is for internal use or external audit.
Share Data
You provide the financials and documents for each holding; we flag anything missing early.
Analysis
We select and apply the right methods per asset, documenting assumptions as we go.
Delivery
You receive a comprehensive report: findings, methods, assumptions, and conclusions ready for audit.
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