Public markets can efficiently determine the value of many financial assets -- publicly traded stocks, bonds and derivatives, for example.

But what if there is no public marketplace for your assets? This is the case with illiquid assets, such as restricted securities, stock options and auction-rate securities.

While demand is increasing for the valuation of illiquid assets, expertise for providing such valuations is limited. Pluris was created to fill this gap. Some of the valuation needs Pluris will help fill include:

• Portfolio Valuations. For investment banks, hedge funds and other investment funds, or other reporting entities, Pluris will provide valuations of restricted stock, warrants, auction-rate securities and other illiquid securities.
• Financial Reporting Valuations. For disclosure and accounting purposes, Pluris will provide valuations of stock option grants and non-vested shares of reporting entities, as well as valuations of complex derivatives.
• Tax Valuations. Pluris will value illiquid securities and other assets for estate tax, gift tax and income tax returns.
• Transaction Opinions. Pluris will provide fairness and solvency opinions needed as part of the due diligence process for corporate transactions.
• Litigation Support. Pluris provides shareholder litigation support services when expert assistance is required.

Regulators and investors are paying more attention than ever before to the valuation of illiquid assets. Regulatory improprieties can severely damage a fund's or a company's reputation. When investors no longer trust managers, they are likely to liquidate their investments.

Unfortunately, when a few companies push the legal boundaries, all businesses are affected. Using a professional valuation firm can help ensure that you have valuations that are not only fair and accurate, but are defensible if regulators ever question them.

The LiquiStat™ Database
How can you determine what price an investor would be willing to pay for your illiquid asset in an arm's-length transaction?

The only reliable way to obtain this vital information is to compare the asset with other similar assets that were recently sold. The more data from real-world transactions a valuation is based on, the better you can support your opinion of an asset's value.

Pluris Valuation Advisors has created the proprietary LiquiStat™ database of transactions in illiquid securities for this purpose. We believe our database provides the most in-depth, comprehensive empirical transaction data available on restricted securities transactions. The LiquiStat™ database is based on data licensed from Restricted Stock Partners, an affiliate of Pluris. Restricted Stock Partners operates the Restricted Securities Trading Network (RSTN), a proprietary network of institutional and accredited investors interested in buying and selling restricted securities and auction-rate securities.