Private equity and venture capital fund managers are required to undertake periodic valuations of their investments as part of an ongoing reporting process to their fund investors.
The International Private Equity and Venture Capital Valuation (IPEV) Guidelines puts forward recommendations, intended to correspond to current best practice, on the valuation of private equity and venture capital investments.
The IPEV Board published a review timeline for its Valuation Guidelines in 2021 which included the launch of a consultation period. The Guidelines were last updated in 2018 as part of the triennial review process. In 2020, the Board published guidance during the COVID-19 pandemic setting out areas to consider during periods of significant uncertainty. In October 2022, draft amendments were published for consultation, following feedback received from industry participants. UK Private Capital (formerly BVCA) responded to the consultation and the final updated Guidelines have been published. You can find these here.
Helpful links
- IPEV website – guidelines and guidance
- IPEV Board publishes updated International Private Equity and Venture Capital Valuation Guidelines - December 2022 – press release
- IPEV Board publishes draft amendments to the International Private Equity and Venture Capital Valuation Guidelines - October 2022 – press release
- IPEV Board provides views on estimating fair value at 31 March 2022 – press release
- 2021/2 review of guidelines – press release
