Estimating Fair Value of Private Equity in Times of Uncertainty

Volatile public markets combined with economic uncertainty related to the COVID-19 response has created a challenging environment to estimate the fair value of non-traded or infrequently traded debt and equity investments. The AICPA Accounting and Valuation Guide: Valuation of Portfolio Company Investments of Venture Capital and Private Equity Funds and Other Investment Companies published in August of 2019 provides excellent guidance in estimating fair value for such investments. Yet uncertainty and public market volatility during 2020 has raised questions as