Key Takeaways
- • Kroll's Q2 2013 Valuation Insights report reflects increased investor optimism in North America and Europe regarding alternative asset valuations, with investors actively sharing investment strategies and market opportunities across regions.
- • The report features the Duff & Phelps U.S. Risk Premium Report as a technical resource, providing market data for valuation professionals conducting discounted cash flow analyses and risk assessments.
- • "Unit of account" methodology emerged as a critical consideration for determining fair value of investments in international markets, addressing a persistent challenge in cross-border alternative investment valuations.
- • Hilary Eastman's return to Duff & Phelps after seven years as Senior Technical Manager at the International Accounting Standards Board signals renewed focus on accounting standards alignment in valuation practices.
- • The report synthesizes findings from the "Alternative Investments Outlook 2013: Limited Partner Survey," capturing LP sentiment on asset allocation and investment thesis priorities heading into the second half of 2013.
Summary
Kroll's Second Quarter 2013 Valuation Insights report captures a pivotal moment of renewed confidence among alternative investment professionals across North America and Europe. The publication serves as a quarterly barometer for institutional investor sentiment, with contributions from limited partners and investment managers reflecting optimistic views on asset valuations and market opportunities as of mid-2013.
The report anchors its technical analysis around the Duff & Phelps U.S. Risk Premium Report, a foundational reference for valuation professionals conducting required equity risk premium analyses for portfolio companies and alternative investments. This technical framework remains essential for practitioners applying discounted cash flow methodologies to asset valuations during periods of market recovery.
A notable international focus addresses the conceptual importance of "unit of account" in determining fair value—a methodological consideration that becomes increasingly complex when valuations span multiple currencies and accounting jurisdictions. This topic reflects the growing sophistication required of valuation teams managing multinational portfolio positions.
The report also highlights a significant personnel development: Hilary Eastman's return to Duff & Phelps following seven years of service as Senior Technical Manager at the International Accounting Standards Board. This appointment suggests an organizational commitment to integrating IASB accounting standards expertise into valuation methodologies, particularly relevant as international accounting convergence continued to influence fair value measurement practices.
The underlying "Alternative Investments Outlook 2013: Limited Partner Survey" provides empirical grounding for the optimism reflected throughout the report, capturing institutional LP perspectives on investment thesis, asset allocation priorities, and risk tolerance as alternative asset markets stabilized in 2013.
The report anchors its technical analysis around the Duff & Phelps U.S. Risk Premium Report, a foundational reference for valuation professionals conducting required equity risk premium analyses for portfolio companies and alternative investments. This technical framework remains essential for practitioners applying discounted cash flow methodologies to asset valuations during periods of market recovery.
A notable international focus addresses the conceptual importance of "unit of account" in determining fair value—a methodological consideration that becomes increasingly complex when valuations span multiple currencies and accounting jurisdictions. This topic reflects the growing sophistication required of valuation teams managing multinational portfolio positions.
The report also highlights a significant personnel development: Hilary Eastman's return to Duff & Phelps following seven years of service as Senior Technical Manager at the International Accounting Standards Board. This appointment suggests an organizational commitment to integrating IASB accounting standards expertise into valuation methodologies, particularly relevant as international accounting convergence continued to influence fair value measurement practices.
The underlying "Alternative Investments Outlook 2013: Limited Partner Survey" provides empirical grounding for the optimism reflected throughout the report, capturing institutional LP perspectives on investment thesis, asset allocation priorities, and risk tolerance as alternative asset markets stabilized in 2013.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.