BRUSSELS, Belgium, May 29, 2013 (GLOBE NEWSWIRE) -- The International Private Equity and Venture Capital Valuation Guidelines Board (IPEV) welcomes endorsements of the IPEV Valuation Guidelines (www.privateequityvaluation.com) from the U.S. National Venture Capital Association (NVCA) and the Private Equity Growth Capital Council (PEGCC). The NVCA and PEGCC join 40 other endorsing organizations around the world that represent both general partners (GPs) and limited partners (LPs); all of these groups support a consistent valuation framework that is compliant with relevant accounting standards for venture capital and private equity investment funds.
"The endorsement of the IPEV Valuation Guidelines by the NVCA and PEGCC further demonstrates the acceptance of common and consistent global valuation practices in the Private Equity and Venture Capital industry," said William J. Hupp, IPEV Board Vice Chairman and former Chief Financial Officer at Adams Street Partners. "LP investors need reliable and comparable estimates of value determined in compliance with applicable fair value accounting standards. Referencing the IPEV Valuation Guidelines by GP's in their fund raising and reporting communication to LPs helps assure an LP that they can use the reported valuations effectively in their investment process."
The IPEV Valuation Guidelines have been drafted to be consistent with US Generally Accepted Accounting Principles (US GAAP) and International Financial Reporting Standards (IFRS). The IPEV Valuation Guidelines include best practice valuation guidance developed by key stakeholders – including LPs, GPs, auditors, and valuation experts with deep industry experience.
"Fair Value estimates continue to face heightened scrutiny from auditors and regulators," said David Larsen, IPEV Board Member and managing director at financial advisory and investment banking firm Duff & Phelps. "The IPEV Valuation Guidelines help managers, investors, auditors and regulators understand and apply valuation judgments for the venture capital and private equity industry using the perspective of such market participants as is required by relevant accounting standards."
Notes to Editors:
The IPEV Valuation Guidelines exist to help the private equity industry address the need for greater consistency and comparability in assessing Fair Value for private equity and venture capital investments. The Guidelines also promote compliance with IFRS, US GAAP and other accounting principles.
Separate and distinct from the IPEV Valuation Guidelines, the IPEV Investor Reporting Guidelines address the need for information beyond requirements of financial statement reporting, taking into account the need for flexibility among various types of funds and fund managers.
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.
The private equity and venture capital associations supporting IPEV include:
AFIC - Association Française des Investisseurs pour la Croissance
AIFI - Italian Private Equity and Venture Capital Association
AMEXCAP - Mexican Private Equity Association
AMIC - Moroccan Venture Capital and Private Equity Association
APCRI - Portuguese Private Equity and Venture Capital Association
ASCRI - Spanish Private Equity and Venture Capital Association
ATIC - Tunisian Association of Capital Investors
AVCA - African Venture Capital Association
AVCAL - Australian Private Equity and Venture Capital Association
AVCO - Austrian Private Equity and Venture Capital Organization
BVA - Belgian Venture Capital & Private Equity Association
BVCA - British Private Equity and Venture Capital Association
BVK - German Private Equity and Venture Capital Association e.V.
CAPE – China Association of Private Equity
CVCA - Canada's Venture Capital and Private Equity Association
CVCA - China Venture Capital Association
CVCA - Czech Venture Capital and Private Equity Association
DVCA - The Danish Venture Capital and Private Equity Association
EMPEA - Emerging Markets Private Equity Association
EVCA - European Private Equity and Venture Capital Association
FVCA - Finnish Venture Capital Association
HKVCA - Hong Kong Venture Capital Association
HVCA - Hungarian Venture Capital and Private Equity Association
ILPA - Institutional Limited Partners Association
IVCA - Irish Venture Capital Association
LAVCA - Latin American Private Equity and Venture Capital Association
LPEq - Listed Private Equity
LVCA - Latvian Venture Capital Association
MENA Private Equity Association
NVCA - Norwegian Venture Capital & Private Equity Association
US NVCA - United States National Venture Capital Association
NVP - Nederlandse Vereniging van Participatiemaatschappijen (Dutch Private Equity and Venture Capital Association)
NZVCA - New Zealand Private Equity and Venture Capital Association
PEGCC – Private Equity Growth Capital Counsil
PSIK - Polish Private Equity and Venture Capital Association
Réseau Capital - Québec's Private Equity and Venture Capital Association
RVCA - Russian Private Equity and Venture Capital Association
SAVCA - South African Venture Capital and Private Equity Association
SECA - Swiss Private Equity and Corporate Finance Association
SLOVCA - Slovak Venture Capital Association
SVCA - Singapore Venture Capital and Private Equity Association
SVCA - Swedish Private Equity and Venture Capital Association
CONTACT: For comments, please contact: William J. Hupp - Tel: (001) 312-404-5570 email: firstname.lastname@example.org or David Larsen (Duff & Phelps) - Tel: (001) 415-693-5330 email: email@example.com For further information, please contact: Didier Guennoc, IPEV Secretary, Tel: +32 486 62 99 78 email: firstname.lastname@example.orgSource:IPEV Group