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SEC probe highlights valuation challenges

The need for documented valuation practices at private equity firms is one of a number of issues related to the SEC’s recent inquiries into the industry and reported investigation into a fund managed by Oppenheimer Holdings.

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The US Securities and Exchange Commission and Massachusetts attorney general’s reported investigation into valuation practices at Oppenheimer Holdings may help accelerate the trend of private equity firms adopting more thorough, written valuation procedures.

Firms have already been ramping up documentation of their valuation methods in advance of the 30 March 2012 deadline to register with the SEC.