markit

Valuation Algorithms: New Markit Technology

by

July 18, 2013

An announcement from Markit, a financial information services company, caught our eye this week because it is evidence of the shift or expansion to online technologies in the PE industry.

 

Markit announced in a statement that it has launched “ Markit Portfolio Valuations – Private Equity”, a new valuation service for investors in private, unlisted companies.  The service includes the provision of valuations for equity investments in growth and buy-out stage companies.

 

An article in FN contrasts Markit’s software solution with current valuation services offered by analysts and specialists employed by corporate finance consultancies. FN says these human resources offer “stiff competition”  to the new technology based solution.

 

The idea behind Markit’s software is to offer an independent and third party figure based on transparent data. It is meant to remove analyst subjectivity, replacing it with observable inputs and extensive peer comparisons to deliver objective, market-driven prices.

 

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