The Alternative Investment Fund Managers Directive (“Directive”) became effective on July 22, 2013. The Directive introduces a new system for the marketing of alternative investment funds (“Funds”) in the EU and creates a legal framework to monitor and supervise alternative investment fund managers.
The Directive allows for a fairly flexible valuation framework which is consistent with the diverse assets in which Funds can invest. Illiquid assets are difficult to value. Best practice dictates external valuation agents perform an independent valuation. Not only does a Fund mitigate conflicts of interest by appointing an external valuation agent, doing so has the added benefit of providing evidence that a Manager has fulfilled its fiduciary responsibilities to its investors.
Houlihan Capital can prepare and review a fund’s valuation policies and provide clients with independent valuations of geographically diverse assets ranging from single investments to multi-class portfolios. The firm has a history of working closely with regulators, auditors, third-party administrators, investors, and some of the world’s largest private investment funds.