A fresh take on risk and valuation

Private equity

Finalyse provides an outsourced transparent, auditable, independent valuation service for Privates Equity and Private Debt instruments. We also address compliance challenges, such as risk management reporting and due diligence process for Management Companies. Beyond the need of fair value, our service addresses the clients’ need to set up a private equity valuation process that is justifiable and that avoids conflicts of interest. Our experts can be hired to perform the valuations or to review them in the context of due diligence.

Your challenges

  • We value all types of Private-Equity-like instruments: equities, loans, convertibles, structures...
  • We can provide a due diligence process at the inception of a deal or for a year-end exercise.
  • We take care of gathering all market data: FX rates, equity volatility, yield curves.
  • We make sure to be compliant with regulations: AIFMD, EUVECA, etc.
  • Our expertise makes it possible to ensure market best practices. We follow the IPEV guidelines.
  • In addition to detailed documentation, we provide support and follow-up explanations in case of need.

Our offer

USE OF SEVERAL METHODOLOGIES

Consistency of pricing over time

  • Different methodologies considered (Public multiples, DCF, recent transactions, net asset value)
  • Focus on keeping consistency in the choice of the methodology to avoid undue gaps

STAYING CLOSE TO MARKET CONDITIONS

Data check, plausibility reviews and cross checks

  • Use of several methodologies in case of doubt
  • Update and review of market data
  • Record keeping of data after pricing

STAYING CLOSE TO MARKET CONDITIONS

Calibration process

  • Emphasis is given to market indicators evolution and consistency with global market conditions (Interest rates, Stock markets, Peers, etc.)

Why entrust Finalyse with your valuations? 

Getting a fair valuation of your private equity or private debt instruments can be costly and time-consuming. Also, the on-boarding of an external party can bring an independent aspect to your valuation and provide confidence while avoiding conflicts of interests issues. Each PE case is different in the PE world and we endeavour to fit to each specific situation in order to provide bespoke solutions.

Typical deliverables

A sound and detailed valuation report.
Risk dashboards linked to a valuation (stress tests, sensitivity to market data, scenario analysis) at portfolio or position level.
Open dialogues with Investment managers as well as full transparency of the process.
The service is enhanced with fully documented justification.
Specific support can be provided on request from auditors, regulators, or shareholders.

Selected client cases

UCITS

We exercise pricing derivatives of our client's clients and calculating sensitivity in the CRIF format. We also provide calculation of initial margin and run back testing. The final clients benefit from a one-stop shop, using Finalyse for pricing and calculation and using our client for the collateral management process.