Portfolio Valuation

Defensible valuations, delivered faster.

Investment managers’ business models, the markets they serve, and the regulatory frameworks governing them are changing quickly. The movement of alternative investments from being exclusively available to institutional investors to being available to the retail market is raising the bar for investment managers as they scale assets under management, report more frequently, and give investors greater transparency into portfolio performance.

Stout supports a wide range of investment structures, including traditional private investment funds, BDCs, and interval funds with daily liquidity targeting the retail market. Our experts have the experience, bench strength, and technology to streamline and simplify your valuation and portfolio monitoring processes. Leveraging decades of valuation experience across every industry, stage of development, and asset class, our team modernizes your valuation process and delivers insightful portfolio analytics.

State of the Art Technology: Drivr

At the center of Stout’s portfolio valuation and monitoring process is Drivr, our AI-powered portfolio intelligence platform. Built by valuation professionals with input from fund CFOs, risk teams, and auditors, Drivr is the engine behind our valuation and portfolio monitoring process, and the reason we can work faster while increasing rigor and transparency. With Drivr, we compress your valuation timeline, saving you time and effort while enabling you to scale. What took weeks can take days and what took days can take hours, enabling you to spend your time on other portfolio matters.

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We help our clients value their illiquid assets on a daily, monthly, quarterly, semi-annual, and annual basis. Whether you are seeking assurance on your own valuations or an independent valuation opinion from us on one or more of your assets, or you seek to leverage our proprietary model to help monitor asset values of an interval fund on a daily basis, we deliver opinions that are independent, well supported, and fully documented. Our valuations comply with the relevant reporting standards and are built to withstand scrutiny from auditors, regulators, and investors.

Clients We Serve

Our Portfolio Valuation professionals are trusted advisors of all varieties of investment managers and institutional investors that invest in illiquid assets.

• Interval funds 
• Regulated investment advisors 
• Public and private business development companies (BDCs) 
• Private equity, private credit, venture capital and growth equity funds 
• Hedge funds 
• Collateralized debt and loan obligation companies 
• Sovereign wealth funds 
• Pensions, endowments, family offices and other institutional investors 
• Insurance companies 

Valuation Process and Procedures

Stout has established best practices for valuation procedures specific to portfolios of numerous companies and with multiple securities per company. We take time to understand the intricacies associated with each engagement.

Asset Experience

We have extensive expertise establishing and supporting the fair value across all classes and stages of development of illiquid investments including:

• Private credit
• Senior and subordinated debt
• Unitranche loans
• First-out/last-out term loans
• NAV loans
• Convertible debt
• Asset-based lending
• Residential and commercial mortgage assets
• Preferred and common stock
• Warrants and options
• Hybrid securities
• Fixed income and interest rate derivatives
• Structured products (CDOs, CLOs, etc.)
• Litigation claims
• Financial guarantees
• Real assets

Highlighted Service Areas

Loan Portfolio Analytics

Our Loan Portfolio Analytics team has deep lending knowledge and the largest database of transactions in the industry. We leverage our unique models and valuation expertise while working with our clients in applying judgment and contextual analyses. 

With decades of expertise in loan valuations, stress testing, and credit scoring, we leverage our real-world knowledge and comprehensive data to inform our advanced modeling.

Valuation Process Support

When internal valuation teams need additional scale, we can provide experienced professionals to support valuation and portfolio monitoring. We can partner with you to embed our experienced professionals into your organization to scale your valuation and/or monitoring process until you decide to increase the size of your team.

Fund Management Company Valuations

We provide valuations of fund management companies and related interests for investors and fund managers with tax, estate, transaction, and reporting needs. Our experience includes work with some of the world’s largest holders of fund management company interests.

Regulatory Compliance

We help clients evaluate and document valuation matters tied to regulatory and reporting requirements, including securitization-related retained interests and Rule 2a-5 reporting. We combine valuation expertise and workflow discipline with proprietary technology to support a more efficient and well-documented compliance process. 

Risk Management

We help investment managers assess risk at the investment, fund, and portfolio levels through experienced valuation judgment and technology-enabled analytics. Using Drivr, our proprietary portfolio intelligence platform, we help clients monitor exposures and bring greater structure to risk management processes.

Derivatives and Structured Products

Stout is actively assisting clients with the valuation of an array of common and exotic derivatives and structured products. Our team has deep industry experience in residential, consumer, and commercial lending and securitization, as well as financial technology and structured credit investments. We deliver our third-party derivative and structured finance valuations for periodic NAV calculations, transaction opinions, and regulatory disclosures.

Valuation Best Practices

Alternative investments have become more complex since IFRS 13 and ASC 820 were introduced, and valuation processes need to keep pace with changing markets and investor expectations. We help fund managers and limited partners benchmark valuation practices and strengthen governance around portfolio monitoring and fair value reporting.