Potential Changes in the Valuation of Restricted Equity Securities

A newly proposed FASB Accounting Standards Update (ASU) may fundamentally change how funds value equity securities subject to contractual sale restrictions (like IPO lock-ups). This represents a major shift from current ASU 2022-03 guidelines, introducing discounts for lack of marketability (DLOMs) that will directly impact net asset value (NAV).

Download your copy to prepare your fund boards, valuation designees, and Rule 2a-5 processes for these changes.