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Valuation Services

414 Capital has performed over 20,200 valuation exercises to date worldwide, gaining recognition as leading global valuation practice

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Valuation services and key differentiators



Portfolio Valuation


414 Capital delivers independent valuations for alternative asset managers’ illiquid assets. The Firm covers a wide range of strategies, including private equity, venture capital, debt, infrastructure, energy, real estate, natural resources, and agribusiness

Event-Driven Valuations


The Firm provides valuation solutions for a variety of complex events or situations, ranging from market valuations for financial/tax reporting to expert testimony in contested situations

Fairness and Solvency Opinions


414 Capital’s team delivers timely, independent, and thoroughly supported opinions that withstand external scrutiny to assist boards of directors, board committees, and other related parties with their fiduciary duties when evaluating potential transactions

Customer-centric culture


Fast reaction time and processing speed


True independence-free of conflicts of interest


Deep market experience and technical rigor


Comprehensive infrastructure to ensure business continuity


Rigorous IT and data security protocols


Development and retention of top talent


Lean processes with compliance best practices





Portfolio Valuation
Services

Demand for third-party independent valuations

  • Increased scrutiny from investors, regulators, and auditors alike has led to a demand for greater transparency in the reporting and valuation practices of alternative asset managers
  • Many alternative investment managers value investments internally, a process ripe for conflicts of interest and full of potential biases, resulting in a shift away from these self-assessments in the industry
  • Independent valuation advisors provide accurate and reliable valuations of complex and illiquid investments, eliminating the appearance of bias in the valuation process


Benefits of an independent valuation process

Unbiased and objective analysis
Adherence to industry standards and best practices
Transparecy for investors and shareholders
Objective performance measurement
Application of consistent criteria
Critical review of the information provided


Sources of added value by 414 Capital

  • Experience across all asset classes
  • Fast reaction and processing speed
  • Dedication to quality customer service for GPs and LPs
  • Use of state-of-the-art technology
  • Adherence to industry standards, including IFRS 13, US GAAP ASC 820, IVS, and IPEV Valuation Guidelines


The firm’s financial professionals hold market-leading industry designations and advanced degrees to meet fair value reporting requirements with true independence and a lack of conflicts of interest




+120

Funds covered

+800

Assets valued periodically

+11

Years of continuous engagement

11

Countries

Select sample of existing clients

Event-Driven Valuations


Valuation solutions for a variety of complex situations



414 Capital has earned clients’ trust by bringing clarity to the most complex valuation assignments





414 Capital performs rigorous and independent valuation for the following four event categories: Compliance, Transactions, Conflict Resolutions, and Corporate Strategy. The team of professionals at 414 Capital leverages the Firm’s investment banking platform and ensures its valuations are based on real- world market dynamics


Events and situations

Compliance

  • FMV for financial reporting
  • Tax planning and reporting
  • Gift, estate, and succession planning
  • Charitable contributions
  • Equity security valuations IRC 409 A
  • Impairment testing
  • Transfer pricing
  • Purchase price allocation
  • Issuer / investor – paid research

Transactions

  • Mergers and acquisitions
  • Capital raising
  • Divestitures
  • Shareholder transactions
  • Restructurings
  • Business combinations
  • Securitizations
  • Intangible assets transactions

Conflict Resolution

  • Contested situations
  • Business litigation
  • Shareholder disputes
  • Bankruptcies
  • Insurance claims
  • Expert testimony

Corporate Strategy

  • Business unit reviews
  • Corporate reorganizations
  • Employee stock option grants
  • Capital structure optimization
  • Asset backed financing
  • Securitizations
  • Issuer / investor – paid research
  • Fairness ans Solvency Opinions


Fairness and Solvency Opinions

Why do clients seek Fairness or Solvency Opinions?

Fairness Opinions (“FO") and Solvency Opinions (“SO") are needed for the following purposes:

  • To provide an objective and independent analysis of certain financial elements in a transaction
  • To help decision-makers demonstrate their application of business judgment and duty of care in evaluating a transaction
  • To assist decision-makers in avoiding potential fraudulent transfers or distributions

FOs and SOs are delivered as part of a transaction process, usually prior to the Board of Directors’ approval of the transaction

When are FOs and SOs required?

Fairness and Solvency Opinions are typically issued to support stakeholders in the following types of transactions:

  • Mergers and acquisitions
  • Cross-fund transactions and transfers
  • Takeover bids
  • Related party transactions and transfers
  • Buyouts of minority equity holders
  • Buy-backs
  • Recapitalizations
  • Tender offers
  • Going-private transactions
  • Bankruptcies, liquidations, or restructurings
  • Employee Stock Ownership Plan (ESOP) transactions
  • Spin-offs, split-offs

True independence and experience are key aspects to consider when selecting a third-party provider. 414 Capital’s extensive experience in the field ensures clients are delivered unbiased opinions that withstand external scrutiny