The International Private Equity and Venture Capital Valuation (IPEV) Board’s current update reflects valuation guidance from IFRS 13, ASC Topic 820 (US GAAP), and other inputs and is available here. In addition to improved readability, and new explanatory comments, valuation-specific enhancements include:

• Clarifying that using the price of a recent investment should not be the default valuation technique. The guidelines reinforce the premise that fair value must be estimated at each measurement date as required by the relevant business valuation and accounting standards and a ‘careful consideration of the facts and circumstances.’
• Replacing ‘private equity’ with the term ‘private capital’ to prevent misunderstanding and highlight applicability to various types of private investments in debt and equity.
• Increasing detail on valuation considerations for early-stage investments.
• Further information on valuing debt as an investment.

Karin Lagerlund, IPEV Board member, says, ‘[T]he updated 2018 IPEV Guidelines will aid GPs in providing robust estimates of fair value that is required by their LPs.’