What should a private equity NAV roll-forward separate?

Answer

A NAV roll-forward should separate beginning NAV, cash flow timing, benchmark-driven market movement, true-up treatment, and idiosyncratic adjustment. Blending these items into one unexplained delta makes the process hard to govern and hard to reproduce.

• Cash flows should update the exposure base at the right effective date and timing.
• Market movement should be calculated from benchmark levels and beta.
• True-ups should be recorded when external observations become known.
• Idiosyncratic adjustments should be supported by policy or approval evidence.