Private equityportfolio valuations.

Most private equity funds value their portfolios quarterly, with a more detailed assessment at the financial year end. Quarterly valuations support LP reporting and NAV calculations, while the annual valuation carries the fuller documentation needed to withstand audit. Interim valuations may also be required around fundraising, secondaries, or material portfolio events.

Private equity portfolio companies are most commonly valued using a market multiple approach, a discounted cash flow analysis, or recent transaction evidence, often in combination. The IPEV guidelines treat market multiples and DCF as the primary techniques for established businesses, with the appropriate method depending on the company's maturity, the reliability of its forecasts, and the availability of comparable data. The judgement lies in weighting these methods consistently across reporting periods.

The IPEV guidelines are the International Private Equity and Venture Capital Valuation Guidelines, the recognised framework for valuing private equity and venture investments at fair value. They matter because auditors, LPs, and regulators expect funds to follow them, and adherence is what makes a valuation defensible under scrutiny. They set out how to apply fair value principles consistently rather than prescribing a single formula.