Alex Ambroz

It was marked at 100 million last year, and it was marked at 100 million five years ago.

You decide to get it off your balance sheet.

If you get a haircut, maybe a fund that's older, lesser quality, a team that isn't as strongly held together, it doesn't have a strong reputation.

Instead of getting 80 to 95% of the NAV, as you'd hope, maybe you're getting 50 to 60% of the NAV.

So the positive there is you're getting actual liquidity.

You're getting out of a line item that has just been sitting dead weight on your balance sheet in your portfolio for years.

The negative aspect of that is you have to acknowledge when the performance gets written down and that valuation comes down to your investment team, to your investment committee, that's something you've been carrying at 100 million.

In reality, the valuation, when you realized it in the secondary sale, maybe the valuation was only 50 to 60 million.

And sometimes that can be difficult.

It's difficult to acknowledge sometimes that the valuations that we carry are not the true valuations of the assets.

CVs are another tool in the marketplace.

What do LPs think about CVs?

Love them, hate them at the same time.

On the positive side, you have to imagine that from the private investment firm perspective, they invested in this company, they watched it grow, they support it, and they can try to sell it.

But if they try to sell it, they may feel, the private asset firm, that there is unrealized value that they're leaving on the table.

And they don't want that to happen.

They don't want to.

Yeah, that's a great question.

The example I was giving earlier about ADIC, Abu Dhabi Investment Corporation, the reason they sued the private asset firm is that they believed the underlying company that was being put into a continuation vehicle could have had real life proceeds of maybe $7 billion in an IPO or in a sale to another firm.

But the mark in the continuation vehicle gave a valuation of just $5.5 billion.