Duff & Phelps as External Valuer: AIFMD and the Valuation Requirement
The Alternative Investment Fund Managers Directive (AIFMD) imposes far reaching rules that have a profound impact on the way alternative investment fund managers (AIFMs) interact with investors and other stakeholders.
Addressing the subjectivity, transparency and judgment that are inherent in the valuation of illiquid investments is a focal point of the Directive’s provisions on valuation. There are very specific steps that AIFMs must take in order to comply with these new valuation requirements, even for AIFs with predominantly liquid investments.
Duff & Phelps is a market leader in providing portfolio valuation services required for AIFMs to comply with the Directive, including:
- Illiquid portfolio pricing valuation services, including as External Valuer
- Best practice guidance in cost effectively enhancing independence in the valuation function
- Reviews of key personnel and stakeholders involved in performing the valuation function
- Drafting valuation policy and procedures
- Ongoing documentation of valuation methodologies
- Process development governing the use of models
- Independent valuation guidelines
Enhancing Independence: How can Fund Managers comply with AIFMD Valuation Requirements
On 22 July 2014, the Alternative Investment Fund Managers Directive (AIFMD or Directive) transitional period for the authorization or Registration by fund managers as AIFMs (Alternative Investment Fund Managers) expired. AIFMs are now subject to the full provisions of AIFMD irrespective of whether they were formally authorized under the provisions of AIFMD.
AIFM Directive and the Independent Valuation Requirement
Duff & Phelps managing directors Chris Franzek and Mathias Schumacher discuss how they are working with fund managers to address the independent valuation requirement of the Directive in a new video.
Duff & Phelps Contributes to AIMA's updated Guide to Sound Practices for Hedge Fund Valuations
The Alternative Investment Management Association (AIMA), the global hedge fund industry association, has updated its Guide to Sound Practices for Hedge Fund Valuation.
"Independent Valuation Under the Regime of the AIFM Directive"
The Alternative Investment Fund Managers Directive (AIFMD) is a broad piece of European Union regulation which governs managers of alternative investment funds (hedge funds and private equity funds and other such fund vehicles). - Managing Director Mathias Schumacher and Director Ryan McNelley published in Financier Worldwide.