SBAI Podcast

Podcast Episode 14: A Conversation on Valuation – Art or Science? With Ryan McNelley

Episode Summary

In this episode, Ryan McNelley of Kroll joins Brian Digney of the SBAI to explore how private market valuations are evolving—highlighting why independence, transparency, and regulatory scrutiny matter more than ever. They also discuss the growing role of technology, the realities of conflicts of interest, and why not all valuation services are created equal.

Episode Notes

In this episode, Ryan McNelley, Managing Director and EMEA Portfolio Valuation Leader at Kroll, joins Brian Digney, Research and Content Director at the SBAI, to discuss the evolving landscape of private market valuation from the perspective of the independent valuation agent. Their conversation covers:

• Valuation Matters – Even for Illiquid Assets: Interim valuations influence investor decisions, allocations, manager compensation, and fundraising—even in closed-end funds.
• Regulators Are Increasing Scrutiny: The FCA and others are focusing on the independence, transparency, and commercial relationships of valuation providers, not just technical methods.
• Not All Valuation Services Are Equal: Ryan describes the broad spectrum of services that valuation agents can provide, as we hear, not all services could be considered to be truly independent.
• Conflicts of Interest Are Inherent but Manageable: Valuers are paid by managers, but independence can be maintained.
• Valuation Differences Are Common and Often Reasonable: Divergent views on the same asset can stem from different data, instruments, or assumptions, especially in distressed or venture scenarios.
• Technology and AI Will Play a Bigger Role – Carefully: Automation can enhance efficiency and scale but cannot replace accountability; human oversight remains essential for credible valuations.

This episode provides valuable insights for both allocators seeking to strengthen their due diligence processes and managers aiming to meet the evolving expectations of institutional investors.

About the SBAI:

We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership, and knowledge. We do this by setting Standards, providing industry guidance, and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$ 8tn in assets.