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Valuation
Our Board of Directors determines the fair value of our portfolio investments on a quarterly basis. Our investments generally do not trade in a liquid market, and, in fact, in the life of any one investment, there are only two days when we know with certainty the exact value of our investment - the day we fund the investment and the day we exit the investment. Every quarter, during the intervening years until we exit the investment, we make a good faith judgment of the portfolio company's worth, and, therefore, our investment's fair value. This is a subjective determination, because there is no single standard for determining fair value in good faith.
Determining the fair value of our investments requires the work of many internal and external resources. To assist us in determining fair value, we have engaged third-party valuation consultants who work with our valuation and private finance investment professionals on a quarterly basis.
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