PE Quarterly Valuations - Whatever You Like?

For the buyout (or growth) guys/girls out there – how aggressive are your quarterly equity valuation marks?

I ask because it is a tacit part of being an associate at my fund that we fully support the often not-so objective valuation marks that our managing partner(s) asks of us. Exhibit A: one of our funds is underperforming (no bankruptcies, etc, just sideways in aggregate EBITDA) but we continue to raise our marks, via either DCF assumptions (so flexible!) or BS add-backs and precedent comp additions. We have obviously also realized the benefit in the public equity market run-up in our public comp methodology. I could confidently say that our portfolio is worth only 70-80% of what it is currently marked at to our LPs.

How, you ask, do we approach end of year auditing? Our auditors can, as I’m sure yours can as well, easily be convinced to accept our marks with minimal elaboration. In fact, we often strongarm our valuation firm (at end of year) to raise their valuation range in advance of our audits.

Am I completely off here? Does everyone do this? I was explicitly told last week that we need to raise the mark on one investment as several others in the same fund are trending lower. I would certainly imagine there is an incentive to behave this way before/during fundraising (though we are not doing so).

Thanks!

1 Comments
 

Doloribus rerum nisi nihil doloribus aperiam nesciunt occaecati. Temporibus voluptas consequatur rerum. Magnam labore deleniti sunt modi est odit maxime. Placeat dolorum quis accusamus.

Quidem voluptates eligendi aut. Consequuntur autem mollitia pariatur nam ea eveniet.

Voluptates provident voluptatem reprehenderit facere dolores consequatur. Quidem repudiandae enim perspiciatis sint enim in odit.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

July 2026 Private Equity

  • The Riverside Company 99.6%
  • Blackstone Group 99.3%
  • KKR (Kohlberg Kravis Roberts) 98.9%
  • Warburg Pincus 98.5%
  • Vista Equity Partners 98.1%

Overall Employee Satisfaction

July 2026 Private Equity

  • Blackstone Group 99.6%
  • KKR (Kohlberg Kravis Roberts) 99.3%
  • The Riverside Company 98.9%
  • Ardian 98.5%
  • Warburg Pincus 98.1%

Professional Growth Opportunities

July 2026 Private Equity

  • Bain Capital 99.6%
  • The Riverside Company 99.3%
  • Blackstone Group 98.9%
  • Starwood Capital Group 98.5%
  • KKR (Kohlberg Kravis Roberts) 98.1%

Total Avg Compensation

July 2026 Private Equity

  • Principal (9) $653
  • Director/MD (24) $547
  • Vice President (99) $363
  • 3rd+ Year Associate (104) $281
  • 2nd Year Associate (235) $272
  • 1st Year Associate (411) $229
  • 3rd+ Year Analyst (33) $157
  • 2nd Year Analyst (97) $134
  • 1st Year Analyst (272) $124
  • Intern/Summer Associate (38) $81
  • Intern/Summer Analyst (355) $61
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
kanon's picture
kanon
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
dosk17's picture
dosk17
98.9
6
GameTheory's picture
GameTheory
98.9
7
DrApeman's picture
DrApeman
98.9
8
CompBanker's picture
CompBanker
98.9
9
Betsy Massar's picture
Betsy Massar
98.9
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”