Deloitte Survey Highlights Evolving Valuation Practices in Private Markets
According to Deloitte's 24th Fair Valuation Pricing Survey, private-market investing is driving significant changes in valuation practices. The report notes increased demand for expertise and governance as fund groups adapt to the complexity of growing private markets, regulatory scrutiny, and technological advancements like artificial intelligence (AI). Paul Kraft from Deloitte emphasizes that innovation must be paired with disciplined oversight. Key findings show a rise in private equity exposure, with 51% of respondents investing in it—up sharply compared to last year. Private credit also saw growth, with 69% receiving spot prices or price ranges for valuations. AI adoption is accelerating, with 77% using it more frequently across valuation and reporting tasks. However, only a small percentage perform full daily valuations that include unobservable inputs. Regulatory focus on valuation practices remains strong, as nearly half of those examined by the SEC had their policies scrutinized last year. The report underscores the need for fund groups to prepare for ongoing complexity in managing private market assets and AI integration.
Topics: Artificial Intelligence Investment Management Private Markets Regulatory Scrutiny