Washington, D.C. (PRWEB) May 29, 2013
The National Venture Capital Association (NVCA) Board of Directors unanimously endorsed the International Private Equity and Venture Capital (IPEV) Valuation Guidelines at its board meeting on May 13, 2013. These guidelines, developed by U.S. and international industry participants, were written for practitioner use in developing and implementing valuation reporting processes and were finalized by the IPEV board in December 2012.
“The IPEV Valuation Guidelines are the result of industry stakeholders across a number of countries coming together to develop appropriate valuation guidance for venture capital, growth capital, and private equity firms,” said Mark Heesen, president of NVCA. “These guidelines are consistent with U.S. GAAP which specifies that fair value be determined using market participant assumptions. The collaborative process that took place reflects a strong understanding of the nascent companies in which our industry invests.”
Three members of the NVCA CFO Task Force served on the IPEV Committee: William Hupp of Adams Street Partners (Vice Chair of IPEV), Mike Maher of US Venture Partners and Stephen Holmes of InterWest Partners. In addition, veteran industry valuation expert David Larsen of financial advisory and investment banking firm Duff & Phelps was heavily involved in the drafting.
By endorsing these guidelines, NVCA joins the US Private Equity and Growth Capital (PEGCC) Association, and many venture capital, private equity, and limited partner associations in North America, Europe, Asia, Africa, and Australia.
The NVCA resolution, which passed unanimously, reads:
NVCA endorses the updated IPEV Valuation Guidelines released by the IPEV Board in December 2012 and applauds the work of international and US GPs and LPs in creating this guidance. We will promote IPEV Valuation Guidelines to our members and encourage our members to use this document in establishing their own processes and procedures in consultation with their LPs.
The full set of guidelines as well as a complete list of endorsing associations is available at http://www.privateequityvaluation.com/.
Venture capitalists are committed to funding America’s most innovative entrepreneurs, working closely with them to transform breakthrough ideas into emerging growth companies that drive U.S. job creation and economic growth. As the voice of the U.S. venture capital community, the National Venture Capital Association (NVCA) empowers its members and the entrepreneurs they fund by advocating for policies that encourage innovation and reward long-term investment. As the venture community’s preeminent trade association, NVCA serves as the definitive resource for venture capital data and unites nearly 400 members through a full range of professional services. For more information about the NVCA, please visit http://www.nvca.org.
In October 2005, IPEV was created as an independent body and charged with maintaining, promoting, monitoring, and updating the Valuation Guidelines, as well as providing guidance on the application of the Guidelines to all worldwide stakeholders in the Private Equity and Venture Capital industry—assisting practitioners, investors, regulators and auditors. More information can be found on the IPEV website at http://www.privateequityvaluation.com.