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Net Asset Value in Private Equity

Authors: Gregory W. Brown; Maria Nykyforovych Borysoff;

Net Asset Value in Private Equity

Abstract

<div> The valuation of seasoned closed-end drawdown&nbsp;<span>funds, which include private equity buyout and&nbsp;</span><span>venture capital (VC) funds, plays a crucial role in&nbsp;</span><span>portfolio management and investment decision making.&nbsp;</span><span>Despite the lack of observed market&nbsp;</span><span>values for these funds, investors heavily rely on&nbsp;</span><span>net asset values (NAVs) as a primary&nbsp;</span><span>metric. However, NAVs can be influenced by&nbsp;</span><span>managerial discretion, introducing potential&nbsp;</span><span>biases in the process. This entry examines the&nbsp;</span><span>challenges faced in valuing such funds, the&nbsp;</span><span>impact of mark-to-market rules like SFAS&nbsp;</span><span>157, and the broader implications of NAVs on</span> </div> <div> the industry and future fund performance. </div>

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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