Financial Reporting Valuation

Portfolio Valuation Services

Mercer Capital provides portfolio valuation services for hedge funds, BDCs, private equity firms, and insurance companies

Independent estimates enhance the confidence of all parties in the reasonableness of overall portfolio valuation of illiquid assets. They also help assure compliance with a fund’s applicable accounting standards, including ASC 820 Fair Value Measurements and Disclosures (formerly SFAS 157). Private investment funds, including private equity funds and hedge funds, can provide comfort to their investors, auditors, and fund managers by seeking independent fair value estimates for Level 3 assets.

Mercer Capital provides a comprehensive suite of valuation services to assist boards of directors, portfolio managers, financial managers, and others with financial reporting requirements. With over 30 years experience in working with financial institutions of all types, Mercer Capital has the ability to combine technical expertise, industry knowledge, and innovative approaches—to help clients resolve fair value reporting issues successfully.

Our services for fund managers include periodic independent reviews of management determinations of value. These services are cost-effective and include a series of established procedures designed to provide both internal and investor confidence in fair value determinations.

Procedures include the verification of analytics, financial analysis, independent analysis of public guideline or comparable companies and private transactions, evaluating income methods (capitalization or discounted cash flow), tests of internal consistency in valuation, and other techniques based on our years of experience in valuing illiquid, alternative investments.

Services and Who We Work With

We provide the following services:

  • Secured and unsecured debt instrument valuation services
  • Preferred and common equity interests valuation services
  • Convertible securities, warrants, and options valuation services
  • Derivative security valuation services
  • Auction rate securities valuation services
  • Financial reporting valuation services

We work with:

  • Hedge funds
  • Private equity funds
  • Funds of funds
  • Business development companies
  • Fund investors
  • Third-party administrators of investment funds