The demand for greater private asset valuation frequency is being propelled by several factors, primarily centered around increased liquidity requirements among closed-end clients. Traditionally, the quarterly reporting cycle has been standard practice, but there’s a notable shift towards more frequent valuations, including monthly, daily, and even weekly cycles in some cases. 

The democratization of private markets is a key driver behind this trend. With greater accessibility to private assets, managers are under pressure to provide more generous liquidity terms. For instance, in the real estate sector, managers are often required to furnish flash or ad-hoc Net Asset Values (NAVs) for joint venture partners or refinancing deals. Additionally, regulatory requirements such as monthly VAT reporting and listing rules for listed REITs mandate stringent monthly reporting, further necessitating more frequent valuations. 

In the private debt space, monthly Gross Asset Values (GAVs) or NAVs have become common requirements, often accompanied by comprehensive investor-level reporting. 

The demand for an accelerated valuation timeline poses challenges for General Partners (GPs), as it requires sophisticated technology and expert knowledge to produce reports efficiently. However, partnering with service providers equipped with the necessary technology, asset class expertise, and resources to deliver daily, weekly, fortnightly, and monthly NAV reporting can help alleviate the pressure on GPs, allowing them to focus on their core business activities.