Difference Between Valuation Analyst Role at Hedge Fund and Big 4?

Hello everyone,

Was just wondering if anyone knew the difference between the responsibilities of a valuation analyst at a Big 4 vs. at a hedge fund. From what I can gather, the duties of the former are very much driven by financial reporting requirements. However, do valuation analysts get to perform valuations on potential new investments?

If anyone could shed some more light on the differences (role-related and compensation-related) between the two, it would be much appreciated. Thanks!

 

I am not sure about the valuation function at a hedge fund but I can tell you the function of an analyst at a Big 4 transaction advisory business valuation group

Preparing a valuation report for the following reasons: - Estate tax planning - ESOPs - Purchase price allocation - FAS 141 - Goodwill impairment testing - FAS 142 - Family limited partnership

Analysis typically requires: - DCF - Deal & public comps - Black Scholes model

  • Work product delivered to a client is usually in a report format 60 -100 pages
 
Best Response
darkmagician383:
I am not sure about the valuation function at a hedge fund but I can tell you the function of an analyst at a Big 4 transaction advisory business valuation group

Preparing a valuation report for the following reasons: - Estate tax planning - ESOPs - Purchase price allocation - FAS 141 - Goodwill impairment testing - FAS 142 - Family limited partnership

Analysis typically requires: - DCF - Deal & public comps - Black Scholes model

  • Work product delivered to a client is usually in a report format 60 -100 pages

I see - all I gathered from the recruiter on the HF valuation analyst position is that it would not entail participating directly on active deal teams, but rather provide assistance to these teams and quarterly valuation and reporting for 15-20 debt to equity investments. My thoughts are, if most of the heavy lifting is done by the analysts on the deal team, what would the valuation analyst be specifically responsible for? Thanks for the insight!

 

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