§ 01 — What It Is
The number your financial statements — and your LPs — rest on.
Fair value measurement is the exercise of estimating what an asset would fetch, or a liability would cost to transfer, in an orderly transaction between market participants at the measurement date — the definition Ind AS 113 sets and auditors test against. It is recurring work for funds marking a portfolio every quarter, and one-time work when a reporting event forces a mark: a new instrument on the balance sheet, an investment property structure, a liability that must be carried at fair value.
We measure fair value for PE/VC portfolio holdings (for NAV and LP reporting), complex instruments such as CCPS, convertibles and ESOP-linked liabilities, and investment property-holding structures — and we support finance teams through the disclosure and audit questions that follow. Every mark is prepared under a senior valuer — an IBBI Registered Valuer for Securities or Financial Assets — who signs the work and stands behind it when the auditor calls.
§ 02 — Who Needs It
Common triggers
- Quarter-end NAV close — portfolio marks due for fund NAV, LP statements and management reporting on a fixed calendar.
- LP or fund audit cycle — year-end marks that must survive the fund auditor's independent review, with workpapers to match.
- Down round or impairment indicator — a portfolio company raises below the last round, misses plan or loses a key customer, and the last-round mark is no longer defensible.
- Complex instruments on the books — CCPS, convertible notes, warrants or ESOP liabilities that Ind AS requires at fair value, with option-pricing or scenario mechanics behind the number.
- Financial reporting events — investment property structures, first-time Ind AS adoption or a new fair-value-through-P&L designation that needs a supportable opening mark.
§ 03 — Our Approach
Consistent across quarters, defensible in each one
Fair value work fails in two ways: a mark that doesn't hold up in isolation, or a methodology that quietly drifts between periods. We design against both:
- Methodology memo first — for recurring mandates, we agree the valuation policy per holding at the outset: technique, key inputs, calibration to the entry round. Each quarter then updates inputs, not the framework.
- Calibrated, not copied — recent rounds are calibrated and rolled forward against performance and market movement, so marks reflect the measurement date rather than a stale headline number.
- Triangulated conclusions — income, market and milestone evidence reconciled per holding, with the Ind AS 113 input hierarchy (Levels 1–3) documented for the disclosure notes.
- Audit-ready workpapers — every material input sourced and every judgement written down, so the auditor's questions have answers before they're asked.
Each cycle closes with a plain-English value narrative per portfolio or instrument — the one page the IC actually reads — and a post-delivery advisory note flagging what to watch before the next measurement date.
§ 04 — FAQ
Questions we hear before every mandate
Our last funding round is 18 months old. Can we still mark to it?
Not mechanically. A stale round is a data point, not a conclusion. We calibrate the original round, then roll it forward against what has actually happened since — revenue performance, runway, sector multiple movement, any secondary trades — and conclude a mark that reflects the measurement date. Sometimes that supports the round price; often it doesn't, and the documentation explains why either way.
What do Level 1, 2 and 3 inputs mean in plain English?
Level 1 is a quoted price for the identical asset in an active market — listed shares. Level 2 is observable market data for similar assets — traded bond yields, quoted multiples. Level 3 is unobservable inputs — your own projections and assumptions, which is where most private-company and fund-portfolio marks sit. The level drives disclosure depth, and Level 3 marks attract the most audit attention — which is why the documentation matters as much as the number.
Can you handle the whole portfolio on a recurring basis?
Yes — portfolio-wide, quarterly or semi-annual mandates are the core of this practice. We agree the valuation policy and calendar once, then run each cycle to a fixed timetable aligned to your NAV close. Single-holding or single-instrument engagements work too; the fee simply reflects the scope.
Will you deal with our auditor directly?
Yes, and we prefer to. Workpapers are prepared to be handed over, and the signing valuer responds to the audit team's questions on technique, inputs and judgements directly — so your finance team isn't translating between the two. Because we are a pure-play valuation practice with no audit arm, there is no independence conflict in doing so.
How long does it take, and how is the fee structured?
For standard one-time mandates, an indicative range within 5–7 business days and a full report within 10–15. Recurring portfolio cycles run to a pre-agreed calendar — typically locked to your quarter close. Fees are fixed and scope-bound: per cycle for recurring work, per mandate otherwise, quoted in writing before we begin.