Unlike publicly traded stocks, which are valued daily by the market, AIFs hold illiquid assets that are not easily priced. Valuation in private markets is complex and often done quarterly or semi-annually.
Fund managers use sophisticated methods like discounted cash flow (DCF), comparable company analysis, and comparable transaction analysis. This process is highly critical because the fundÕs net asset value (NAV) depends on it. Investors must trust that the managerÕs valuation policy is rigorous, conservative, and aligns with global best practices.
