"2004 2 Mar Press Release NVCA Resolution Regarding PEIGG Guidelines - DOC"
March 2, 2004 As scheduled, the NVCA Board of Directors met at its quarterly meeting yesterday and one of the topics of discussion was valuation guidelines. The Board adopted the following statement regarding such guidelines: The NVCA recommends that its members create, follow and communicate clearly the specific procedures and methodologies used for valuing their portfolios. These methodologies should be agreed to by the firm’s investors (LPs), and conform when required to Generally Accepted Accounting Principles, recognizing that the ultimate responsibility for valuations remains with the general partner. When evaluating current valuation procedures or developing new approaches, the NVCA suggests its members include a review of the Private Equity Industry Guidelines Group (PEIGG) 12/2003 “Private Equity Valuations Guidelines” document (found at www.peigg.org). We commend the fine efforts of PEIGG, an independent group which sought and reflected input from the NVCA and other industry stakeholders. The NVCA encourages diligence, prudence, and caution when implementing the specific elements of any guideline, such as valuation write-ups of early-stage companies in the absence of market-based financing events. This statement was developed after seeking significant input from member firms. If you have any questions regarding the above statement, please contact Jeanne Metzger at 703- 524-2549 ext. 116 or at firstname.lastname@example.org. NVCA