An Asset Management Firm Optimizes Interval Fund Valuations

This case study explores the optimization of interval fund valuations by a large asset management firm in response to the democratization of private assets for retail investors.

Interval funds, which offer limited liquidity and are priced daily at net asset value (NAV), have become popular for holding less liquid alternative investments. This daily pricing requirement poses operational challenges, including resource-intensive processes, manual errors, and the need for efficient technology integration.

The firm sought to enhance operational efficiency by implementing a technology-based solution that automates market data integration, reduces manual errors, and provides comprehensive benchmarking data. This approach allows investment teams to focus on strategic initiatives and revenue generation. Additionally, increased regulatory scrutiny on private credit valuations necessitates third-party independence to ensure transparency and maintain an audit trail, thus enhancing the firm’s reputation among investors and regulators.

Technology plays a pivotal role in streamlining valuation processes, offering advanced analytics portals for structured data and interactive dashboards for monitoring. The incorporation of third-party independence and transparent reporting fosters investor confidence and strengthens the firm’s reputation. Efficient resource management is crucial for handling daily valuations at scale, allowing investment teams to reclaim time for strategic initiatives, while dedicated analyst teams ensure quick resolution of valuation queries. The solution also addresses the complexities of distressed asset valuations through expert insights and timely delivery.

Utilizing comprehensive, same-day market data from S&P Global Market Intelligence ensures accurate and up-to-date inputs for valuations, supporting informed decision-making and minimizing operational risks. However, the full scope of how these strategies are implemented and their impact on the firm’s success remains to be explored.

To delve deeper into the intricacies and outcomes of these valuation processes, download the full report to uncover the complete narrative and insights.