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PRIVATE EQUITY

Each Private Equity (PE) firm is unique in the following ways:

  1. How they construct and raise funds, manage that capital, and make investments, usually in going business concerns.
  2. Their criteria for considering investments, especially the vertical focus in certain industries.
  3. The appetite for minority or majority purchases of companies.
  4. The expected rate of return (ROI) and holding periods(s).
  5. The fund limitations (years) on holding dry powder.

We are premier in the valuation of PE firms and the various partners' interests. Most of these valuations are used to gift portions of their interests to their children. In some cases, partners just want to know their ownership interests at year end.

The valuation of a partner's interest in the PE usually involves the following:

  1. Carried interests – accrued value in a fund depending upon the current investments and the fund waterfall of returns to the investors. For just initiated funds with no investments, our analysis is premised on returns from other funds for that firm and market returns for similar funds.
  2. Equity or vertical slices owned by a partner in a fund.
  3. Interest of the individual partner in the management company for the fund.
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