How should a private fund govern portfolio valuation?
Create a repeatable fair-value process with independent challenge, method consistency and evidence-linked reporting.
A private fund valuation process should define the valuation unit, fair-value framework, calibration date, method selection, comparable evidence, forecast controls, capital structure, discount or premium rationale, sensitivity analysis, independent review and approval. IFRS 13 defines fair value for IFRS reporters; the IPEV Guidelines provide private-capital valuation best-practice recommendations.
From model output to governed conclusion
The valuation committee should understand changes in operating performance, market evidence, financing, instrument rights, dilution and exit assumptions. A consistent process should document judgement, contrary evidence, sensitivity and movements from prior periods.
Valuation governance checklist
| Control | Evidence |
|---|---|
| Framework | Accounting basis, policy, valuation unit and approval authority. |
| Calibration | Entry price, transaction assumptions and subsequent changes. |
| Method | Market, income or other method and reason for selection. |
| Inputs | Forecasts, comparables, discount rates, capital structure and rights. |
| Challenge | Sensitivity, contrary evidence, independent review and committee record. |
Official sources reviewed
| Official source | Why it matters |
|---|---|
| IFRS Foundation; IFRS 13 Fair Value Measurement | Official IFRS fair-value measurement standard overview. |
| IPEV; 2025 Valuation Guidelines | Private-capital valuation best-practice recommendations. |
Sources reviewed September 2026. Rules, standards and market practice can change; verify the current position with qualified advisers.
Related Matchpoint resources
Last updated: September 2026.
It is the governed estimation and reporting of fair value for portfolio investments under the fund's applicable accounting and valuation framework.
Calibration connects the entry transaction assumptions and observed price to subsequent valuation inputs and helps explain changes over time.
Method selection depends on the investment, available evidence and framework. Consistency, justified changes and reconciliation of methods support governance.
Discuss a mandate
Speak to a partner about the structure, evidence and execution plan for your transaction.
