Private Equity Endorses IPEV Valuation Guidelines
Judge: “The IPEV Valuation Guidelines have been endorsed worldwide by both private equity and growth capital firms and their limited partner investors.”
The Private Equity Growth Capital Council (“PEGCC”) announced today that they have endorsed the International Private Equity and Venture Capital (“IPEV”) Valuation Guidelines from December 2012. The IPEV Valuation Guidelines are used globally as the framework for valuing private equity investments for financial reporting purposes.
“The IPEV Valuation Guidelines have been endorsed worldwide by both private equity and growth capital firms and their limited partner investors,” said Steve Judge, President and CEO, PEGCC. “They are the recognized standard for valuing private equity portfolio companies and provide guidelines for preparers and users of financial statements as well as their auditors and accountants.”
By endorsing the IPEV Valuation Guidelines, the PEGCC joins 40 international private equity and venture capital associations of general partners and limited partner investors across six continents. These organizations include the European Private Equity and Venture Capital Association and the Institutional Limited Partners Association. Along with the PEGCC, the U.S.-based National Venture Capital Association (“NVCA”) also endorsed the IPEV Valuation Guidelines this year. The PEGCC and NVCA represent the largest and most active private equity, growth capital and venture capital firms in the U.S.
The IPEV Valuation Guidelines provide a framework for arriving at fair value of investments which is consistent with accounting principles. Fair value is the accounting principle which represents the amount that would be received in an orderly transaction using market participant assumptions at each reporting date. The guidelines are prepared so that fair value measurements derived when using the IPEV Valuation Guidelines are compliant with U.S. GAAP as well as International Financial Reporting Standards.
About the Private Equity Growth Capital Council
The Private Equity Growth Capital Council (PEGCC) is an advocacy, communications and research organization and resource center established to develop, analyze and distribute information about the private equity and growth capital investment industry and its contributions to the national and global economy. Established in 2007 and formerly known as the Private Equity Council, the PEGCC is based in Washington, D.C. The members of the PEGCC consist of the world’s leading private equity and growth capital firms united by their commitment to growing and strengthening the businesses in which they invest. More information about the PEGCC can be found at www.pegcc.org.
About IPEV
Founded in 2005 as an independent professional body with a global perspective, IPEV provides high quality, uniform, globally acceptable, best practice guidance for Private Equity and Venture Capital Valuation and Reporting purposes. The IPEV Board monitors evolving market practices in the use of the IPEV Guidelines. It proposes amendments to the Guidelines following any relevant changes to accounting standards and market practices and formally reviews the Guidelines every three years. The Board has an advisory and educational role and gives guidance on the application of the Guidelines to all stakeholders in the private equity and venture capital industry including practitioners, investors, regulators and auditors.
