JOURNAL
Valuation method, compliance and practice
Short pieces on the questions that keep coming back in committee: definitions that get confused, IPEV requirements, method trade-offs. Written to be used, not to fill space.
Continuous valuation: why we stopped building for quarter-end
Why valuation work waits for the quarter, what it would take for it not to, and where people still sign. A founder's note on where Jolv is heading.
Read the articleCorrecting a valuation after committee: a new version, not a rewrite
How to correct a valuation after committee approval without losing the audit trail: what must stay readable and how to version and document the gap.
Challenging a valuation in committee without redoing it
Committee sign-off without pushback protects no one. The five questions that actually move a valuation, worked through with a numeric example.
Warrants in private debt: pricing the kicker without inflating MoIC
A warrant attached to a private debt ticket needs a method choice: intrinsic value or option pricing, tracked separately from the loan in MoIC.
MoIC, TVPI, DPI: three multiples, three questions
Investment MoIC and fund TVPI do not share a denominator. Reconciling the two and treating escrow, write-downs and PIK: the conventions to establish.
DCF in private equity: a cross-check, not the primary method
In private equity, DCF corroborates the multiple; it is rarely the primary method. What IPEV 2025 says, and when DCF actually applies.
DLOM: where to apply the illiquidity discount in the bridge
The DLOM discount for lack of marketability gives a different result depending on where it sits in the bridge. Where it belongs, and the gap it creates.
PIK interest and IRR: why capitalized interest is never a cash flow
PIK interest grows real exposure to a borrower but produces no cash. Treating capitalization as an IRR cash flow silently inflates fund performance.
MoIC or RVPI: two confused multiples, only one measures performance
MoIC includes distributions, RVPI does not. Confusing the two distorts how a fund's performance reads. Definitions, calculation and common traps.
Comparable company selection: the framework that survives diligence
Peer selection decides whether a multiple holds up. A practical framework: economic profile first, then size, growth, geography and ranges.
Quarter-end close: why valuation is the real bottleneck
Quarter-end rarely breaks on method. It breaks on scattered inputs. Where the bottleneck actually sits in a fund's valuation process, and what fixes it.
Valuation policy: what auditors and investors actually look for
Investors diligence the process, not just the number. Three pillars of a valuation policy that turns an audit from an investigation into a walkthrough.