Jasper uses Unit Price to represent the value of a unit within a fund, calculate investor returns within the Jasper dashboard and set the base price bid and asks are tied to (within a range) on our secondary market.
Unit Price is calculated by taking the Adjusted Net Asset Value (Adj. NAV) of a fund and dividing it by the number of units issued for that fund.
The Adj. NAV of a fund is calculated by taking the Net Asset Value (NAV) of a fund (based on GAAP accounting standards) and applying some non-GAAP adjustments the manager deems appropriate to represent the value of a Unit.
The most common non-GAAP adjustment made by commercial real estate fund managers is to capitalise establishment fees for new capital raises over a period of time. This is typically the hold period on an investment with a fixed timeline or 5 years on an investment that is open-ended.
At the end of each month, the Unit Price and Adj. NAV for a fund will be calculated and updated within an investor's dashboard. A worksheet will be made available to investors that outlines the calculation, including an explanation of any adjustments made. Investors in a fund will be able to view and download this worksheet from within the "documents" section, for each holding within an investors portfolio.
It's also important to recognise that private asset valuation isn't an exact science. Jasper's approach represents a comprehensive and best-practice methodology, however, it's subject to a variety of assumptions involving an element of forecasting and an element of subjective evaluation.
If you have any questions regarding this article, please contact your Account Manager directly or email [email protected].