SBAI Publishes New and Updated Valuation Standards for Alternative Fund Managers
The Standards Board for Alternative Investments (SBAI), the global, independent standard setter for the alternative investment industry and custodian of the Alternative Investment Standards (‘Standards’) today announced the publication of new and updated valuation standards.
The revised Standards follow an extensive review of valuation practices, informed by collaboration with institutional investors, investment managers, regulators, and peer standard setters. The updates are designed to ensure the Standards remain fit-for-purpose in evolving market conditions, while simplifying guidance without compromising their integrity.
The changes come amid tighter liquidity and increased scrutiny of valuation practices in private and illiquid markets. Investors and regulators are placing greater emphasis on consistency, transparency, and governance, given the central role valuations play in investment decisions and investor outcomes.
As alternative assets are held on behalf of a broad range of beneficiaries, including pension savers and other long-term investors, there are strong expectations that valuation practices are robust, consistent, and fair, while recognising the judgment inherent in illiquid assets. At the same time, efforts to broaden access to private markets may increase valuation frequency and operational demands. Against this backdrop, robust valuation frameworks are essential to support transparency, scrutiny, and effective investment decision-making.
Jane Buchan, SBAI Chair and Chief Executive Officer at Martlet Asset Management, said: “Sound valuation practices sit at the heart of trust in investment decision-making. At a time of market volatility and evolving private and public market structures, these updated Valuation Standards focused on sound governance, providing timely, practical guidance that supports confidence across the investment ecosystem.”
The updated Standards aim to promote greater consistency, transparency, and comparability in valuation practices across funds, while remaining principles-based and flexible enough to reflect a wide range of approaches.
Key enhancements include 20 new sub-standards within the existing Valuation Standards framework that address the governance and disclosure of:
- Engagement with external valuation service providers
- Selection, appointment, and engagement with auditors
- Manager-led secondaries, crossed-investments, or related-party transactions
- Valuation methodology
- Financial statements
- Valuation process and procedure evaluation
- Liquidity considerations
To provide sufficient time for Signatories to review and implement the latest amendments, the deadline for implementation will be the later of:
- 6 months following the Signatory’s next renewal date, or
- 12 months from the date of publication of these new Standards.
About the SBAI
The SBAI is an active alliance of over 150 alternative asset managers and over 100 institutional investors dedicated to advancing responsible practice, partnership, and knowledge. It advocates for an effective alternative investment ecosystem through robust standards and the exchange of ideas.
For more information on the SBAI, please contact [email protected] or visit www.sbai.org.
