Valuation Policy
The framework, methodologies, governance, and controls under which the firm determines the fair value of investments held by its managed funds, with an independent Director of Valuations recommending marks ratified by the Chief Financial Officer.
- Policy Owner
- Director of Valuations
- Approving Body
- Audit Committee
- Effective Date
- January 1, 2026
- Last Reviewed
- June 1, 2026
- Next Review
- January 1, 2027
- Version
- 1.0
Purpose
The Valuation Policy establishes the framework, methodologies, governance, and controls under which the firm determines the fair value of investments held by its managed funds. The Policy reflects the firm's commitment to consistent, transparent, and independent valuation of every position on the platform.
Scope
This Policy applies to all investments held by all funds managed by the firm, including self-storage real estate equity and development positions, storage-vertical operating businesses, storage technology growth equity, and storage-real-estate credit positions.
Standard of Value
Investments are marked to fair value in accordance with U.S. GAAP ASC 820, using the definition of fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Independence
The Director of Valuations reports to the Chief Financial Officer for administrative matters and to the Audit Committee for policy matters. The Director of Valuations recommends the mark for every position; the Chief Financial Officer ratifies. The Chief Investment Officer is consulted but does not approve. Deal team members are not decision-makers for their own positions.
Cadence
Marks are prepared on a quarterly cycle. The initial mark file is delivered T+15, the Chief Financial Officer review is completed T+25, Audit Committee ratification occurs T+30, and marks are posted to the LP Portal within T+45 of quarter-end. An interim mark may be triggered off-cycle by material events.
Real Estate Methodologies
Stabilized self-storage assets are valued primarily by direct capitalization of trailing and forward NOI, cross-checked against transaction-based discount rates and per-unit and per-square-foot benchmarks. Development and adaptive-reuse assets are valued at cost until a stabilization catalyst supports mark-to-model. Distressed and turnaround assets are marked using a discounted-cash-flow with hazard-adjusted terminal value.
Credit Methodologies
Performing first-lien mortgages are valued at fair value using discounted cash flow with market-observed spread inputs. Non-performing loans are valued at the lesser of remaining principal balance and the discounted recovery value of the collateral, net of workout costs. Mezzanine and preferred equity positions are valued as options on the underlying real-estate value.
Operating Business Methodologies
Operating businesses on the platform, including the Fund IV management platform and the Fund III industrial-adjacent and last-mile logistics assets, are valued using a combination of trailing- and forward-EBITDA multiples, comparable transactions, and discounted cash flow.
Third-Party Independent Valuation
An independent third-party valuation firm reviews every position at least annually. The independent firm may also be engaged to review any position on request from the Audit Committee or the Director of Valuations.
Documentation
Each valuation is supported by a Valuation Memo documenting inputs, methodology, comparables, key judgments, and points of divergence from prior periods.
Escalation
Where the Director of Valuations and the Chief Financial Officer do not agree on a mark, the matter is escalated to the Audit Committee for resolution.
Annual Audit
PricewaterhouseCoopers LLP audits the fair value of every position as part of the annual audit of each fund's financial statements. Audit findings and management responses are reported to the Audit Committee and to limited partners in the audited financial statements.