IPEV board opens consultation

A draft of the amended International Private Equity and Venture Capital (IPEV) valuation guidelines has been published, subject to recent market conditions and feedback from various parties.

For the December 2022 consultation draft, the main updates include:

• Additional guidance relating to the continued experience of industry practitioners applying IFRS 13 and FASB ASC Topic 820;
• A section has been added to address the increasing importance of various ESG factors in the valuation process; and
• Feedback received from various parties with respect to potential enhancements has been included.

“The board continues to work to provide Valuation Guidelines that remain relevant to both GPs and LPs, 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.

The IPEV board aims to standardise best practice guidance for private equity and venture capital valuation processes. Created in 2005, reviewed periodically, and comprising LPs, GPs, and service providers, the board last updated its guidelines in 2018. Additional fair value guidance was included in March 2020, recapitulated in December 2020 and developed further in March 2022.

To provide feedback on the latest draft, send comments and queries to: contact@privateequityvaluation.com. The consultation process ends on Thursday, November 17, 2022.