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TVG is a leading provider of independent third-party valuations of limited partnerships and other illiquid securities to bank and trust companies, brokerage firms, attorneys, accountants, pension consultants, and private investors. TVG has provided valuation advisory services to more than 400 clients nationwide and maintains valuation reports on more than 1,000 limited partnerships and other illiquid securities. TVG offers a variety of
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Valuations for ERISA Purposes
Current Internal Revenue Service and Department of Labor regulations require the annual valuation of assets held in pension plans. As limited partnerships are "non-marketable" securities and their fair market values are not readily ascertainable, independent valuations are often necessary for accurate value reporting and calculation of distributions to pension plan beneficiaries. Compliance with the valuation guidelines set forth in these regulations is critical to avoiding imposition of penalties, which include assessment of taxes and, in the worst cases, pension plan disqualification. To assist its clients with valuation compliance under ERISA, TVG renders fair market value opinions documented in a comprehensive report designed with the intent to comply with relevant valuation guidelines under current regulations. Read Case Study # 5 to see an example of how TVG helped one of its clients solve a valuation problem related to ERISA compliance. |
Valuations for Estate and Gift Tax Purposes
Filing of federal estate and gift tax returns is complicated when limited partnership interests are involved. The Internal Revenue Service requires that assets for which there is no ready market be evaluated pursuant to the guidelines set forth in Revenue Ruling 59-60 (RR 59-60), the long-standing IRS pronouncement on the valuation of non-marketable securities. Our valuation reports are designed to withstand IRS scrutiny by addressing relevant valuation standards contained in RR 59-60. Read Case Study # 4 to see an example of how TVG helped one of its clients evaluate a partnership interest for estate tax purposes. |
Valuations for Trust Administration Purposes
Federally chartered banks are subject to periodic audit by the Office of the Comptroller of the Currency (OCC). These examinations include a review of trust account compliance with valuation guidelines to ensure the proper, periodic valuation of trust assets. TVG's process and report documentation is designed to withstand scrutiny under OCC examination, providing trustees with
confidence that audit results will be favorable. To learn more about the FDIC's trust examination guidelines pertaining to limited partnerships held in trust accounts, click here.
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Valuations and Consultation to Resolve Disputes
Limited partnerships are often the subject of disputes which lead to litigation or arbitration proceedings. TVG can apply its substantial expertise in the areas of partnership formation, management, investment, and valuation to assist clients in resolving partnership related disputes. |
Evaluation of Purchase Offers
More and more often, limited partners (and their fiduciaries) receive unsolicited offers from third-parties seeking to purchase limited partnership positions they own or control. These offers, which can be very unfavorable to the selling limited partner, should rarely be accepted without obtaining a professional opinion as to their adequacy. TVG works with its clients to assist them in understanding the value of limited partnership investments which are the subject of such offers - ensuring that its clients are well informed prior to entering into them. Read Case Study # 6 to see an example of how TVG has assisted its client in evaluating the disposition of partnership interests. |
Disposition Consultation
Many limited partnership investors desire to sell their illiquid partnership holdings but have no experience identifying and negotiating with potential buyers. For the client who needs immediate liquidity, TVG can assist by identifying potential buyers and helping the client navigate the complex sale and transfer process. The firm maintains relationships with numerous investors (principals only) nationwide who actively acquire interests in limited partnerships on a secondary basis. Read Case Studies # 2 and # 3 to see an example of how TVG has assisted its clients in evaluating the disposition of partnership interests. If you're interested in getting assistance with disposition of a partnership interest, click here. |
Fairness Opinions
Limited partnership tender offers, especially those involving potential conflicts of interest, will often require a fairness opinion from an independent financial advisor. TVG's extensive experience in the valuation of limited partnership interests, combined with its history working with investors in the limited partnership secondary market, leaves it uniquely qualified to render opinions of fairness in transactions involving partnership interests. The firm has experience in providing fairness opinions in private transactions as well as in transactions subject to review by the Securities and Exchange Commission. |
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