We provide independent oversight of the annual and quarterly valuations of the fund, working closely with the fund manager, the fund administrator and the fund auditor.
Fund Set-Up (2005)
A major US Investment Bank wished to appoint outside valuation experts to provide ongoing annual and quarterly independent valuation reviews for a new special situations fund:
- We assisted in drafting the Valuation Policies and Procedures (VP&P) for the fund incorporating our experience and requirements under best practice guidelines
- We provided an updated draft of the VP&P in January 2010 to reflect the fundamental changes in the capital markets over the preceding two-year period
KPMG was appointed in an ongoing role as independent valuation expert to oversee the annual and quarterly valuation function and offer ‘negative assurance’ opinions on the underlying investments to the fund manager. This involves:
- Preparation and presentation of annual and quarterly valuation reviews of all investments to the Valuation Committee of the Fund:
- Review of quarterly valuation papers presented by asset managers
- Detailed discussions with individual asset managers on approach,
methodology and key assumptions
- Consultations with KPMG Real Estate colleagues in appropriate geographies
- Preparation of a summary report setting out our views and conclusions
We provide the Fund manager with a valuation opinion letter providing assurance on their valuation.
The Big 4 auditors of this fund are comfortable with the work we performed and we have an effective working relationship with them.
The appointment highlights our expertise in reviewing and valuing large funds and the underlying investments on an on-going basis.