How to Value Private Equity Funds and Firms as an Investment Bank

I'd go sum of the parts, and triangulate each of the portfolio companies. But I can't imagine why or even how an analyst outside of that PE fund could even attempt to do this, since none of the financials or even multiples are public...

nafizlinkon:

How would an analyst go about valuing a private equity fund? Any specific multiple, or looking at the portfolio fund and valuing each component separately? Any insights on this would be appreciated.

Can't do this. Unless the fund gives you all the financials for each portfolio company, you won't have the data to do a valuation. Usually the fund will give you a valuation that they have for themselves.

Thanks for goods post! It's nice for us.

Ok thanks for the inputs guys. I was interested because I was looking into a boutique investment bank that deals exclusively with private equity funds. Sorry if the question was confusing was a bit vague.

^ That doesn't mean they value them or anything. They assist PE firms in LBOs and stuff like that probably

Here was the place I was interested in: http://www.stanwichadvisors.com/

It states that they perform fundraising services for private equity partnerships, which confused me a bit. I could really see them assisting in LBOs for PEs as part of advisory services. Let me know what you guys think and always thanks for the input.

They're placement agents who do some buy side M&A on the side. They help PE fund managers raise equity investments for the purposes of the fund.

I have never heard of them before. But if you read what they do, their primary services are all centered around marketing the client's private equity fund to investors.

Private equity funds need money to make investments. These guys help them raise that money so they can make investments.