Valuations for Financial Services

Regulatory and market demands mean heightened scrutiny of investment valuations

For private equity, hedge funds, business development companies (BDCs) and other financial services entities, regular and effective valuations of both debt and equity investments are vital to satisfying intense regulatory scrutiny and demands from investors for increased transparency. The FASB’s ASC Topic 820, Fair Value Measurement, requires that financial services companies fully document their valuation processes and conclusions. Given the complexity of many investments and the often turbulent investment specific and market forces affecting their values, industry and valuation expertise is critical.

RSM understands investment valuation

RSM offers deep and proven experience helping financial services companies address these complex valuation demands across the full spectrum of investment types for their quarterly and annual valuation of their investments:

  • Debt investments, including fixed and floating rate loans, secured and unsecured debt, first- and second-lien term loans, convertible debt and debt guarantees
  • Equity investments, including convertible preferred, straight preferred and common equity
  • Structured products, including collateralized debt obligations, commercial mortgage-backed securities and residential mortgage-backed securities
  • Derivatives, including options, warrants and swaps
  • Carried interest for gift and estate planning

RSM has access to market resources to gain comfort on Level I, II and III assets. Our market resources include Bloomberg, Markit, Thompson Reuters, S&P Capital IQ Leverage Commentary and Data (LCD), CapitalIQ, and extensive data focused on middle market leverage loan issuances and secondary trading activity.

RSM’s national valuation team is comprised of industry thought leaders holding accreditations from the American Society of Appraisers, the Institute of Business Appraisers, the CFA Institute and the American Institute of CPAs. We constantly monitor accounting pronouncements and interpretations, administrative rulings and judicial precedent to help ensure our approach is consistent with a constantly evolving regulatory environment. Our in-depth approach combines the right valuation methodologies for each investment with market-driven analysis that delivers accurate and defensible valuation results that will satisfy both regulators and an increasingly demanding investor market.


How can we help you?

To discuss how our team can help your business, contact us by phone 800.274.3978 or