Valuation of Bank Assets

The return of volatility to the markets, due to COVID-19 and other factors, has created challenges in estimating “fair value” of investment positions. The banking industry, in particular, has seen an increased focus on determining fair value of specific loans and loan portfolios. Fair value accounting in connection with bank…
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Valuation Raised as an Issue by the OCIE

On June 23, 2020, a Risk Alert was released by the SEC on behalf of the Office of Compliance Inspections and Examinations (“OCIE”) that provides an overview of compliance issues found during examinations of registered investment advisers that manage private equity or hedge funds (“private fund advisers”). The Risk Alert…
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Fair Value in Times of COVID-19

The Financial Accounting Standards Board Accounting Standards Codification (FASB ASC) defines fair value, or Topic ASC 820, as the “amount that would be received in an orderly transaction using market participant assumptions at the measurement date”. The uncertainty associated with COVD-19 and the actions taken to reduce the spread of…
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Valuation Fund Transfers — COVID-19 Considerations

Coming Soon: Increased Fund Restructuring in 2020 COVID-19 will significantly accelerate the restructuring of private funds through asset transfers from existing funds to related-party funds or affiliate entities. Such fund transfers have significant valuation and fairness issues that should be considered by GPs, LPs, and their advisors. The timing of…
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The Cayman Islands Private Funds Law 2020

On January 8, 2020, the Cayman Islands Government published the Private Funds Law, 2020 (the “Law”).1 The Law was approved by the Cayman Islands Government and enacted into law on February 7, 2020. The Law introduces, among other changes, new standards for the valuation of a private fund’s assets. According…
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