Private Equity Portfolio Review & Liquidity Assessments

Holding private equity investments is a much different experience than owning publicly-traded securities. The type and quantity of financial and other business information provided by private entities can be very limited. What financial information is available often can be in a substantially abbreviated form without supporting or explanatory disclosure. Whether intentional or not, many private enterprises distribute less than adequate financial information. The status (and value) of your investment is highly dependent on the financial condition and business prospects of the underlying company, which can only be reasonably determined after access to the relevant information. We have the experience to help you gather and analyze this nonstandard information and to determine the status of your investment.

Securities in private enterprises are highly illiquid. The securities are not listed on any exchange and may have other specific restrictions against a transfer without the consent of the company. Since transfers in any secondary (non-public) market are very difficult, a liquidity event, if any, for the securities’ holder often comes directly from the company in the form of a recapitalization or as part of a larger liquidity event for the company as a whole such as a sale, merger or IPO. We can help you analyze your private equity investment and the alternatives available to the underlying company. With these alternatives in hand, you may be able to approach the company regarding a reasonable liquidity transaction acceptable to all parties.
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