Portfolio Valuation

The current market conditions dictate the need for independent and supportable pricing, given the material impact that certain investments can have on the Net Asset Value on a mark-to-market basis. The introduction of FAS 157 has made independent valuation a necessity for entities with financial reporting requirements. Investment management firms are heavily dependent on the validity and integrity of security pricing and portfolio valuation. Houlihan has decades of valuation experience providing companies with objective, independent and defensible opinions of value that meet accounting and regulatory requirements. We combine technical expertise with best practice modeling techniques to perform complex financial instrument and portfolio valuation. We employ sophisticated methodology when it comes to pricing and use the most current mark-to-market pricing technology available. Our experience from both the audit and financial valuation world has established us as a service provider known for handling the most complex and hard-to-value securities.

Houlihan provides comprehensive valuation services to hedge funds, fund advisors, fund administrators and related financial services firms. Our reports are highly transparent, which ensures a deliverable that is well accepted by clients and their auditors, including:

• Monthly, Quarterly and Annual Portfolio Valuations;
• Financial Reporting Compliance;
• Side Pocket Transactions; and
• Specific Investment Valuation.

With the current fair value standards and investors’ bias for increased transparency, Houlihan’s analyst team has solutions to our clients’ valuation needs, regularly valuing such assets as:

• Mortgage-Backed Securities
• Asset-Backed Securities
• Pass-Throughs
• Mezzanine Debt Securities
• Convertibles
• Distressed Securities
• Auction Rate Securities
• Cash & Synthetic CDO & CDO² Tranches
• Credit Linked Notes
• Structured Investment Vehicles
• Exotic OTC options
• Complex Derivatives;
• Private Equity Placements; and
• Other Illiquid and Hard-to-Value Securities (Level III).

Houlihan’s senior leadership team has a clear understanding of the level of independent evidence that is required for auditors to support their opinion, which overall leads to an efficient and more cost effective period-end process.