External and sustainability-aware Valuation for Investment Funds
Independent, defensible valuation support for private market assets
Valuation is one of the most critical governance processes in private funds.
It affects investor reporting, fees, leverage, and regulatory trust — and is increasingly scrutinised by auditors, depositaries, and regulators.
We support fund managers with independent, sustainability-aware external valuation reviews, designed to strengthen valuation quality, transparency, and audit readiness.
What is external fund valuation?
External fund valuation refers to the independent assessment or review of fair value for fund assets, carried out separately from portfolio management.
Under European fund regulation, managers must ensure that valuations are:
- Performed using appropriate, consistent methodologies
- Independent from investment decision-making
- Properly documented and reviewable
- Supported by sufficient professional expertise
External valuation is most commonly used for:
- Private equity and private credit
- Infrastructure and real assets
- Illiquid or complex investments
- Funds facing heightened audit or regulatory scrutiny
Why independent valuation matters
Independent valuation helps fund managers to:
- Strengthen governance and control
- Reduce valuation bias and conflicts of interest
- Improve audit and depositary comfort
- Enhance credibility with investors and LPs
- Defend valuation judgments during periods of market stress
As sustainability, climate risk, and long-term transition factors increasingly affect asset performance, valuation processes must also evolve.
Our approach: sustainability-aware valuation review
We focus on valuation review and challenge, not asset origination or portfolio management.
Our work is designed to complement — not replace — existing valuation processes, by providing:
- Independent review of valuation methodologies and assumptions
- Structured analysis of material sustainability and transition risks
- Clear documentation linking ESG factors to valuation drivers
- Governance-ready reporting aligned with audit and oversight expectations
Where required, we work in collaboration with regulated valuation firms, who retain full signatory responsibility for final valuation conclusions.
What we typically review
Our external valuation support may include:
- Methodology review
(e.g. DCF, income, yield, or multiple-based approaches) - Key assumption challenge
Revenue growth, margins, capex, discount rates, exit assumptions - Sustainability and transition risk assessment
Climate exposure, regulatory risk, cost of transition, asset resilience - Sensitivity and scenario analysis
Highlighting where valuation outcomes are most exposed to change - Governance and independence checks
Clear documentation of scope, limitations, and review process
Outputs are designed to integrate smoothly into existing valuation files and NAV governance workflows.
Who this service is for
Our external valuation review service is relevant for:
- Alternative investment fund managers
(private equity, private credit, infrastructure, real assets) - Valuation committees and boards
Seeking independent challenge and documentation - Fund auditors and depositaries
Looking for clearer valuation evidence and governance trails - Valuation boutiques
Seeking specialist sustainability input within their valuation process
How we work
- Scoping
Define assets, valuation methods, and review focus areas - Independent review
Analyse valuation inputs, assumptions, and sustainability factors - Structured reporting
Provide a concise review pack suitable for audit and oversight use - Collaboration where required
Work under or alongside authorised valuation providers when sign-off is needed
All engagements are performed with clear independence statements and documented limitations.
Start with a discussion
External valuation is not one-size-fits-all.
The right level of independence, scope, and documentation depends on asset type, fund structure, and regulatory context.
If you would like to explore whether an independent, sustainability-aware valuation review could strengthen your fund’s governance or audit readiness, we are happy to start with an exploratory discussion.
👉 Contact us to discuss your valuation framework or upcoming review cycle.