AIF Valuation Services
Independent Portfolio Valuation for Alternative Investment Funds: SEBI and IPEV Compliant
SEBI's June 2023 circular mandates a standardised valuation approach for all AIF investment portfolios: independent, periodic, and aligned with IPEV Guidelines. For Fund Managers, this means valuation can no longer be conducted internally or informally. My Valuation provides independent AIF valuation services for Category I, II and III funds across India, covering NAV determination, portfolio company valuation, and co-investment pricing. Our reports are accepted by Fund Trustees, statutory auditors, institutional investors, and SEBI.
- Certified Business Valuation Experts
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India's Independent AIF Valuation Experts
My Valuation provides independent AIF portfolio valuation services across India, working with Fund Managers, Investment Managers, Trustees, and Compliance Officers on all valuation requirements under the SEBI (Alternative Investment Funds) Regulations, 2012 and SEBI's standardised valuation circular (SEBI/HO/AFD/PoD/CIR/2023/97).
Our firm is led by CA Parth Shah, IBBI Registered Valuer (IBBI/RV/06/2020/13086). We deliver independent valuations that satisfy SEBI's requirement for a valuer separate from the Fund Manager. Every report is prepared using IPEV Guidelines as mandated under SEBI's AIF Master Circular and is designed to withstand scrutiny from Trustees, statutory auditors, and SEBI during inspections, without revisions or resubmissions.
AIF Valuation Services We Provide
We provide complete valuation support for every AIF proceeding type and reporting requirement:
What SEBI's 2023 AIF Circular Changed
In June 2023, SEBI issued a landmark circular (SEBI/HO/AFD/PoD/CIR/2023/97) mandating a standardised approach to valuation of AIF investment portfolios. This changed the compliance landscape for every AIF manager in India:
Standardised Methodology Mandatory
Before June 2023, AIF managers could use any methodology disclosed in the PPM. The circular ended this flexibility, introducing a two-track mandatory framework aligned with SEBI Mutual Fund norms and IPEV Guidelines.
IPEV Guidelines Adopted
For securities not covered under MF Regulations, SEBI mandated valuation as per International Private Equity and Venture Capital (IPEV) Valuation Guidelines, the global standard for private market valuation.
Independent Valuer Required
The valuation function must be independent of the Fund Manager. This directly requires the appointment of external independent valuers like My Valuation.
IPEV 2025 Update
SEBI's AIF Master Circular endorses IPEV Guidelines without pinning a specific edition. Indian AIF managers are expected to operate under the 2025 edition for all reports from April 1, 2026.
Understanding AIF Valuation in India
AIF valuation is the independent process of determining the fair value of an Alternative Investment Fund's investment portfolio, for NAV computation, investor reporting, regulatory compliance, and SEBI filings. Under SEBI (AIF) Regulations, 2012 and the June 2023 standardisation circular, all AIFs must conduct periodic independent valuations using IPEV Guidelines for unlisted and thinly traded securities.
Unlike listed market valuations with observable prices, AIF valuation involves complex unlisted securities, private credit instruments, and illiquid assets. It requires specialised methodologies, independent judgment, and deep knowledge of SEBI's regulatory framework and IPEV Guidelines.
Valuation Across All Three AIF Categories
AIF valuation requirements differ by fund category. Each has distinct asset types, investment strategies, and valuation complexities. We work across all three:
Category I AIFs
Venture Capital Funds, Angel Funds, SME Funds, Social Venture Funds, and Infrastructure Funds. These typically hold early-stage or sector-specific unlisted securities. Valuation often uses DCF with milestone-based adjustments and sector-specific comparables.
Category III AIFs
Hedge Funds and funds using complex trading strategies. May hold listed and unlisted securities, derivatives, and leveraged positions. Mark-to-market and independent valuation of illiquid positions are required.
Category II AIFs
Private Equity Funds, Debt Funds, and Fund of Funds. The largest and most complex category, holding unlisted equity, structured debt, NCDs, and hybrid instruments. IPEV methodology is the primary framework here for fair and consistent valuation.
Fund of Funds
Valuation of underlying AIF units requires a look-through to portfolio company level and independent certification of the reported NAV for greater accuracy and transparency.
The Two-Track AIF Valuation System Explained
SEBI's 2023 circular introduced a two-track system. The valuation methodology depends entirely on the type of security your AIF holds. Understanding which track applies to your fund is the first step in compliance:
| Track 1: MF Norms Apply | Track 2: IPEV Guidelines Apply | |
|---|---|---|
| Securities | Listed securities, traded debt, money market instruments | Unlisted equity, thinly traded securities, private credit |
| Methodology | As prescribed under SEBI Mutual Fund Regulations | IPEV Guidelines: DCF, Market Multiples, Net Assets |
| Valuer | Internal or external, MF norm-compliant pricing | Independent external valuer mandatory |
| Frequency | Daily or as per MF Regulations | Periodic: quarterly or as disclosed in PPM |
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When Does Your AIF Need a Valuation?
Periodic Portfolio Reporting
Quarterly or half-yearly fair value update of portfolio companies, mandatory for investor NAV statements and SEBI reporting under Regulation 27.
Annual Statutory Audit
Statutory auditors require independent valuation support for portfolio assets. Fair value disclosure in financial statements cannot rely on manager estimates.
Unit Allotment and Drawdown
When fresh capital is drawn from investors and new units are allotted, NAV must be certified by an independent valuer before allotment.
SEBI Inspection and Compliance
SEBI may inspect AIF valuation policies and practices at any time. Independent certified reports provide the clearest compliance evidence.
Investor Redemption and Exit
When investors exit or redeem units, independent FMV ensures equitable pricing between continuing and exiting investors.
Co-Investment & Secondary Transactions
When the fund offers co-investment to LPs, or AIF units are traded, FMV certification is required.
Who Needs Independent AIF Valuation Services?
Key Benefits of Independent AIF Valuation
Valuation Methods We Apply for AIF Portfolios
We apply IPEV Guidelines-aligned methods depending on the stage, sector, and asset type of each portfolio company:
Price of Recent Investment (PRI)
Earnings and Revenue Multiples
Discounted Cash Flow (DCF)
Net Asset Value (NAV)
How We Deliver Your AIF Valuation
01
Requirement Analysis
02
Data Collection
03
Financial Modelling
04
Draft Discussion
05
Final Certified Report
The Regulatory Framework Behind AIF Valuation
What's Inside Our AIF Valuation Report
Every report is prepared for investor communication, statutory audit, and SEBI compliance:
Executive Summary
Valuation Policy Alignment
Investee Valuation Details
Sensitivity Analysis
IPEV Compliance Statement
Independence Declaration
Category I, II and III: AIF Valuation at a Glance
Every AIF category has different assets, different methodologies, and different valuation frequencies. Here is the complete reference:
| Factor | Category I AIF | Category II AIF | Category III AIF |
|---|---|---|---|
| Examples | VC Funds, Angel Funds, Infra Funds | PE Funds, Debt Funds, Fund of Funds | Hedge Funds, Complex Trading |
| Typical Assets | Early-stage unlisted equity, SME shares | Growth equity, NCDs, structured credit | Listed and unlisted, derivatives |
| Primary Method | PRI, DCF with milestone adjustments | EV Multiples, DCF, Credit analysis | Mark-to-market plus illiquid DCF |
| IPEV Applicable | Yes, for unlisted holdings | Yes, primary framework | Partial. Listed positions use MF norms |
| Valuation Frequency | Periodic, as per PPM | Quarterly mandatory | More frequent, per fund strategy |
Why Fund Managers Choose My Valuation?
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AIF Portfolio Valuation Today
Category I, II or III: My Valuation delivers SEBI-compliant, IPEV-aligned reports accepted by Trustees, auditors, and institutional investors across India.
