Jessica Marlin Discusses Private Equity Valuations

The SEC’s updated (2022) marketing rule, recognizing the increased use of electronic media and mobile communications, shifted the approach of investors in the funds industry, and prompted compliance professionals to more closely monitor fund valuations.

In two stories in Regulatory Compliance Watch, asset management partner Jessica Marlin shares insight into what advisers should expect.

“Valuation is going to be a huge issue because the SEC can stress substantiation. For many private equity funds, valuation doesn’t drive fees and carry,” Jessica said. “Where it is important is in the next fund, when they’re marketing their next raise. There’s an intersection at valuations and marketing.”

“It’s going to be important for managers to disclose how they’re doing valuations – the disclosures and policies should reflect what they’re actually doing,” she said.