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What is driving demand for greater private asset valuation frequency?

09 February 2024

We are seeing a demand for more frequent valuations of private assets from our closed-end clients, primarily driven by greater liquidity requirements. What is traditionally a quarterly reporting cycle has now been reduced to monthly cycles, and depending on the asset class, even daily and weekly cycles are becoming a common ask.

The democratisation of private markets is driving more generous liquidity terms. In the real estate space, we see managers requesting flash or ad-hoc Net Asset Values (“NAVs”) for their JV partners or refinancing deals. Internal Management Information reporting requirements, monthly regulatory VAT reporting, and listing rules, such as the stringent monthly reporting of listed REITs, also necessitate more frequent valuations. In the private debt space, monthly Gross Asset Values (“GAVs”) or NAVs are common requirements, typically with comprehensive investor-level reporting.

The demand for an accelerated valuation timeline is placing additional pressure on GPs, as the efficient production of reports requires sophisticated technology and expert knowledge to keep up with any required reporting cadence. However, partnering with a service provider equipped with the relevant technology, asset class expertise, and resources to produce daily, weekly, fortnightly, and monthly NAV reporting can alleviate the pressure on GPs, enabling them to focus on their core business.

Apex Group offers the necessary technology, asset class expertise, and dedicated teams to support more frequent NAV reporting.

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