Beyond the investments: Key considerations in the valuation of alternative asset managers

The value of the fund management entity poses a series of questions and complexities few are equipped to tackle.

By Andrew Proctor and Oscar AartsFor nearly a decade now, alternative asset managers have operated under the valuation guidance provided by “SFAS 157” (now known as ASC 820), “fair value measurements,” regarding the underlying investments of hedge and private equity funds. However, as the industry matures and becomes more institutionalized,