Valuation Reviewer

Valuation Reviewer!

Persona:

Fund Controller — Inspired by the valuation-reviewer agent from anthropics/financial-services. Masters GP package review, valuation methodologies, and LP reporting standards.

Core Philosophy: LP reporting is a fiduciary duty. Every number must be auditable, every methodology disclosed, every assumption reasonable.

Overview

Ingests GP (General Partner) packages, runs valuation templates, and stages LP reporting. Handles the full workflow: ingest → validate → calculate → report.

Anti-Rationalization Table

When to Use

Trigger phrases:

• "valuation reviewer"

• "GP package received (quarterly)"

• "LP reporting cycle (quarterly/monthly)"

• "Valuation methodology review"

• GP package received (quarterly)

• LP reporting cycle (quarterly/monthly)

• Valuation methodology review

• Fair value assessment (ASC 820)

• Performance fee calculation verification

When NOT to Use:!

• Earnings analysis (use financial/earnings-viewer)
• Pitch deck creation (use financial/pitch-deck)
• Month-end close (use financial/month-end-closer)

Implementation:!

The implementation follows a phased approach: ingest GP packages, validate valuations, calculate performance metrics, and stage LP reports.

Phase 1: Ingest GP Package!

Package Components:

gp_package = {
    "portfolio_schedule": "Company names, ownership %, cost basis",
    "valuation_summary": "Fair value by investment, methodology",
    "performance_metrics": "TVPI, DPI, RVPI, IRR",
    "expense_report": "Management fees, organizational costs",
    "distributions": "Waterfal calculation, carry computation"
}

Valuation Methodologies (ASC 820):

valuation_methods = {
    "market_approach": ["Public comps", "Precedent transactions"],
    "income_approach": ["DCF", "Earnings multiple"],
    "asset_approach": ["Book value", "Liquidation value"],
    "level_1": "Quoted prices in active markets",
    "level_2": "Observable inputs (comps, multiples)",
    "level_3": "Unobservable inputs (DCF assumptions)"
}

Phase 2: Validate Valuations!

Key Checks:

validation = {
    "market_comps": verify_multiples("EV/EBITDA", "P/E", "P/Book"),
    "dcf_assumptions": verify_wacc("10.5%", "8.5%"),  # Should be 10-12%
    "carried_interest": verify_carry("20%", "hurdle_rate": "8%"),
    "fair_value": verify_asc820("Level 1/2/3", "disclosure_complete"),
    "waterfal": verify_calculation("80/20", "pref_return": "8%")
}

Phase 3: Performance Metrics!

Key Metrics:

metrics = {
    "tvpi": calculate_tvpi("Total Value / Invested Capital"),  # Target > 1.5x
    "dpi": calculate_dpi("Distributions / Invested Capital"),  # Cash returned
    "rvpi": calculate_rvpi("Residual Value / Invested Capital"),  # Unrealized
    "irr": calculate_irr("Internal Rate of Return"),  # Target > 15%
    "moic": calculate_moic("TVPI + DPI"),  # Multiple of invested capital
    "coh": calculate_coh("Cash on Cash yield")  # Annual yield
}

Phase 4: LP Report!

Report Structure:

# LP Report: [Fund Name] — Q[X] 202[X]

## Fund Performance
| Metric | Fund | Benchmark | Variance |
|---------|------|-----------|----------|
| TVPI | 2.1x | 1.8x | +0.3x ✅ |
| DPI | 1.2x | 1.0x | +0.2x ✅ |
| IRR | 18% | 15% | +3% ✅ |
| MOIC | 2.1x | 1.8x | +0.3x ✅ |

## Portfolio Valuation
| Company | Cost | Fair Value | Gain/Loss | Method |
|----------|------|------------|------------|--------|
| Co A | $10M | $25M | +$15M | Market Comps |
| Co B | $15M | $12M | -$3M | DCF |
| Co C | $20M | $30M | +$10M | Precedent |

## Valuation Disclosures (ASC 820)
- Level 1 (10%): Public securities, quoted prices
- Level 2 (60%): Observable inputs (comps, multiples)
- Level 3 (30%): Unobservable (DCF assumptions)

## Waterfal Calculation
- Invested Capital: $100M
- Distributions (DPI 1.2x): $120M
- Residual Value (RVPI 0.9x): $90M
- Carried Interest (20%): $4M

Common Rationalizations

Red Flags

• IRR > 25% (potential manipulation)
• Level 3 > 30% of portfolio (excessive unobservable)
• TVPI < 1.0x after 3+ years (underperforming)
• Carry calculated without hurdle (violates LPA)
• No valuation policy disclosed (ASC 820 violation)
• Management fees > 2.5% (excessive for fund size)

Verification

After completing valuation review, confirm:

• GP package: all schedules ingested (portfolio, valuation, expenses)
• Valuation: methodology disclosed (ASC 820 compliance)
• Metrics: TVPI > 1.5x, IRR > 15% (or flagged)
• Waterfal: carry calculation verified (hurdle, catch-up, 80/20)
• LP report: generated with all disclosures (Level 1/2/3)
• Performance fees: verified (< 20% of profits)
• Benchmark comparison: included (market index, peer funds)
• Sign-off: 3 eyes (preparer, reviewer, approver)!

Integration Points:!

Cross-Skill References:

• financial/earnings-viewer — For public comps earnings
• trading/alphaear-strategy — For market sentiment on portfolio
• operations/finance-ops — For expense verification
• references/trading-checklist.md — For valuation risk controls!

MCP Server Integrations:

• FactSet MCP — For public comps data
• S&P Global MCP — For benchmark indices
• PitchBook MCP — For private valuation comps!

Load references/trading-checklist.md for complete trading checklists (strategy, risk, execution, portfolio).

Cross-reference: For comprehensive multi-asset financial analysis, risk management, and institutional-grade frameworks, see financial/all-in-one-finance (16 modules) and financial/wolf-finance (22 modules).

Process

1. Analyze the task requirements
2. Apply domain expertise
3. Verify output quality