The International Private Equity and Venture Capital Valuation Guidelines Board (“the IPEV Board”) has published draft amendments to the International Private Equity and Venture Capital Valuation Guidelines for consultation.
The IPEV Valuation Guidelines are reviewed periodically by the IPEV Board to ensure they continue to promote best practice when valuing investments and to incorporate changes to accounting standards.
The Valuation Guidelines were last updated in full in 2018 with additional guidance on fair value offered in March 2020, reiterated in December 2020, and further elaborated in March 2022.
This draft full review reflects the continued experience of industry practitioners applying IFRS 13 and FASB ASC Topic 820 as well as incorporating other valuation guidance
Key updates include:
1. The board felt it prudent to incorporate the additional guidance referenced above into the Guidelines.
2. In addition, the board has recognised the increasing importance of various ESG factors in the valuation process and addressed these in the current draft.
3. Moreover, the Board considered feedback received from various parties with respect to potential enhancements. Feedback, combined with the formal consultation responses received, have been incorporated in the 2022 Version of the Guidelines.
“The Board continues to work to provide Valuation Guidelines that remain relevant to both GPs and LP, in particular ensuring ongoing consistency with accounting standards and which remain relevant and reliable. The draft amendments reflect the IPEV Board’s accumulated experience of valuing alternative investments and continuing developments in the alternative asset industry” says Paul Cunningham, chair of the IPEV board. “We welcome feedback from practitioners and investors alike to ensure the Guidelines remain a valuable resource for the industry and continue to provide managers and investors with a source of practical and principles-based fair value guidance”.
To access the draft amendments to the IPEV Valuation Guidelines, please click here.
Notes to editors
1. The IPEV Board and Valuation Guidelines
The mission of the IPEV Board is to provide high quality, uniform, globally acceptable, best practice guidance for private equity and venture capital valuation purposes.
The IPEV Board was created as an independent body in 2005, consisting of LPs, GPs, and service providers, and is responsible for maintaining, promoting, monitoring, and updating the IPEV Valuation Guidelines. The Board has an advisory role and gives guidance on the application of the Guidelines to all stakeholders in the private equity and venture capital industry including practitioners, investors, regulators, and auditors. More information about the IPEV Board can be found here.
2. Consultation process
To access the draft amendments to the IPEV Valuation Guidelines, please click here. Comments on draft valuation guidelines, is requested by Thursday, November 17, 2022.
Please send your response to [email protected].
3. Contact details
For further information, please email [email protected].