Illiquid Asset Valuation
Credit & Valuation
Several valuation methodologies run in parallel, with the disagreement between them as part of the output.
Methods in parallel
- Discounted cash flow, comparable multiples and net asset value
- Stochastic simulation for path-dependent assets
- Machine learning techniques handling the sparse inputs these assets come with
Comparison as output
- Where methods disagree, the dashboard shows by how much
- The assumptions driving the gap are identified
- Usually the most useful output of the exercise
Sensitivity and reporting
- Valuation presented as a range with identified drivers
- Precision matched to what the inputs support
- Reporting structured for audit and investment committee review