Given the complexity associated with valuing illiquid securities, our appraisals fulfill the need to mitigate risks associated with perceived conflicts of interest. Prairie’s conclusions enhance the transparency, independence and credibility of reporting value to stakeholders. Private equity groups and other financial sponsors trust Prairie for our unbiased, third-party valuation services adhering to fair value measurement guidance provided in ASC 820.
Mark-to-Market Reporting for Investments
Solvency Opinions/Fairness Opinions
Carried Interest Valuations for Personal Tax Planning
Investors and other stakeholders expect financial sponsors' fiduciaries to report defensible, robust and transparent values. Prairie’s team of experienced appraisers ensures fiduciaries are protected throughout the periodic reporting requirements for fair value measurements. Our services also include periodic (and highly cost-effective) independent reviews of management's determination of value. We help establish financial modeling procedures designed to provide both internal and external investor confidence in fair value determinations.
Our leveraged finance expertise and independence help guide prudent decisions in recapitalizations for special dividend payments requiring solvency opinions. Our fairness opinions are relied upon for cross-fund transfers when the investment time horizon for portfolio companies extends beyond the life of their funds. In addition, our fairness opinions are delivered to consummate portfolio company combinations.
Succession planning with carried interest gift/sales is common for the principals of private equity groups and other financial sponsors. To capture the asymmetric nature of the carried interest, our team relies on multiple scenarios reflecting a range of future return expectations. Appropriate valuation discounts (for lack of control and lack of marketability) are considered based on the subject equity interest.