International Private Equity and Venture Capital (IPEV), a trade group that sets valuation practices for private funds, has published the 2018 edition of its guidelines. The revised edition was designed to be more readable and eliminate confusion, and now contains explanatory comments. In addition, a number of enhancements have been made including:

• Removing the use of the price of a recent investment as a technique to calculate fair value;
• Replacing the term “Private Equity” with “Private Capital”;
• Increasing detail on valuation considerations for early-stage investments; and
• Adding further information on valuing debt as an investment.