Valuation Policy

The Company carries investments on its Consolidated Statement of Assets and Liabilities at fair value in accordance with US GAAP, with changes in fair value recognised within the Consolidated Statement of Operations in each reporting period. Quoted investments are valued according to their bid price as at the close of the relevant reporting date. Investments in private securities are priced at the bid price using a pricing service for private loans. If a price cannot be ascertained from the above sources, the Company will seek bid prices from third party broker/dealer quotes for the investments. The Investment Manager believes that bid price is the best estimate of fair value and is in line with the valuation policy adopted by the Company.

In cases where no third party price is available, or where the Investment Manager determines that the provided price is not an accurate representation of the fair value of the investment, the Investment Manager determines the valuation based on its fair valuation policy.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date.

Consistent with the above criterion, the following criteria are considered when applicable:

  • Valuation of other securities by the same issuer for which market quotations are available;
  • Reasons for absence of market quotations;
  • The soundness of the security, its interest yield, the date of maturity, the credit standing of the issue and the current general interest rates;
  • Recent sales prices and/or bid and ask quotations for the security;
  • Value of similar securities of issuers in the same or similar industries for which market quotations are available;
  • Economic outlook of the industry;
  • Issuer’s position in the industry;
  • Valuation utilising the net asset valuations provided by the underlying private investment companies/partnerships as a practical expedient;
  • The financial statements of the issuer; and
  • The nature and duration of any restriction on disposition of the security.