Ann: Response to Foreign Shorter Opinion Piece, page-55

This is partially correct. For property assets, they would use an expert valuer. As a very substantial proportion of BLA's AUM is property, this does give significant comfort.

On the other hand, for businesses (not property) - i.e. most of their private equity assets - they would use their own internal valuations, which they would then need to justify to their auditor (if/when queried). There is a mix of art / science to this process and it is undoubtedly true that sometimes valuations do not hold up when you actually try to realise the asset.

Glaucus' allegation that they systematically over-value their illiquid PE investments is inflammatory and unlikely to be thge case, however it doesn't mean that some assets aren't overvalued. Vinimofo, for example, I find very hard to believe it's worth >$100m. I have some familiarity with that industry and I'm very skeptical on that one. The thing is, if you hose all your money on your biggest positions, that weighted-average IRR can fall apart quite quickly.