LiquiStat consists of records of trades that have taken place between investors in the secondary market.
For each transaction, we have collected information, including deal documents, on the buyers and sellers of the securities, the nature, rights, preferences, and privilleges of the securities, restrictions on resale inherent in the securities, and data on the issuer’s financial condition, among other factors.
The goal is, for each transaction, to discover, determine, and analyze the factors that were considered by the buyer and seller when making the decision to trade. These factors, then, represents the main drivers of value of the securities sold.
LiquiStat contains a large number of transactions in limited partner interests in investment partnerships, including hedge fund and private equity fund LP interests. These transactions have taken place at discounts from the NAV of the associated interests.
When appraisers value limited partner interests, including family holding companies (FLPs, LLCs), hedge fund limited partnership interests, private equity fund interests, real estate fund interests, and others, they typically use the cost approach. This, however, is where the complications begin. From the Net Asset Value, discounts for lack of control and lack of marketability must be taken.
But valuation experts are rarely armed with real-world discount data from transactions in similar limited partner interests when making these discount estimates. With LiquiStat, Pluris Valuation Advisors is in the position to supplement our analysis with just this kind of data. It’s one of the reasons that we confidently claim our LP Interest valuations are best-in-class.