Valuation experts are all familiar with the need for fair value measurements of the investment of hedge funds and private equity funds. But what about the valuation of the actual management entities that run these funds? That’s the topic of a new report from Houlihan Lokey, a global investment bank. The authors say: “This is likely to become a more pressing issue in the future, as the frequency of events driving the need for valuations of managers has increased—events like changes in senior members, succession planning, raising new capital at the manager level, attracting and retaining talent through equity ownership, or the outright sale of an equity stake in the manager.” The report discusses certain unique industry attributes that can have a significant impact on the valuation, such as the nature of the assets under management and the relative contribution of management and performance fees.