Valuation Policy
The firm’s methodology for valuing fund assets and the controls that ensure independent, consistent, fair-value reporting.
1. Purpose
This policy establishes a consistent, documented approach to valuing fund assets at fair value, consistent with U.S. GAAP and ASC 820.
2. Scope
The policy applies to all assets held by the funds, the substantial majority of which are illiquid energy-infrastructure investments requiring fair-value estimation.
3. Governance & Valuation Committee
A Valuation Committee, functionally independent of deal teams, reviews and approves valuations on a quarterly cycle. The Chief Financial Officer chairs the committee, and the Chief Compliance Officer provides oversight.
4. Fair-Value Methodology
Assets are valued using appropriate methodologies, including discounted cash flow, comparable transactions, and market-based approaches, selected based on asset type, contract profile, and available data, and applied consistently.
5. Independent Review
Valuations are subject to independent review, and the firm engages independent third-party valuation specialists for material or complex positions. The independent third-party fund administrator maintains the books and records supporting reported values.
6. Inputs & Assumptions
Key inputs and assumptions, including discount rates, contract terms, and market data, are documented and supported. Significant judgments are reviewed by the Valuation Committee.
7. Frequency
Valuations are performed quarterly and upon significant events that may materially affect fair value.
8. Audit
Annual financial statements, including fair-value measurements, are audited by PricewaterhouseCoopers LLP, providing independent assurance over reported values.
9. Documentation & Recordkeeping
Valuation models, inputs, committee minutes, and independent reviews are documented and retained consistent with the firm’s recordkeeping policy.
Notice
This document is a summary of the firm’s internal policy as adopted by the approving body identified above. The complete policy as adopted governs in any case of conflict between this summary and the underlying policy document. Limited partners and other authorized parties may request the full policy from the policy owner. This document does not create contractual rights, employment rights, or third-party beneficiary rights, and may be amended at any time by action of the approving body.
Questions about this policy should be directed to [email protected]. Confidential or anonymous reports may also be made through the channels described in the Whistleblower Policy.
Questions about firm governance
Limited partners, regulators, and counterparties with questions about firm governance, policies, or compliance should contact [email protected].