Stout is engaged to provide quarterly valuations to an SEC-registered investment advisor with over $5 billion of deployed capital. Stout values over 120 different investments for the investment advisor and its subsidiaries, including term loans, asset-backed loans, trade finance loans, and real estate loans.

The effects of the COVID-19 pandemic on subject companies and the broader market heavily impacted privately held debt and equity investments. During the course of 2020, we assisted the advisor in evaluating a variety of issues: store and plant closures; customers losses; supply chain interruptions; production delays; and, in some cases, temporary spikes in financial performance. Our analyses took into consideration changes in enterprise values, covenant ratios, lower cash flow expectations, likelihoods of default, the ability to restructure investments, short-term liquidity options, and coverage for different investments under liquidation scenarios.

Our portfolio valuation experience helped to provide transparent financial reporting of fair values for investors while reducing any conflicts of interest and assisting to manage risk across the firm.