The companiesâ service extends from pricing single illiquid and complex structures up to valuation platforms. ValuePrice supports its customers to concentrate on their core business and therefore enhance their competitiveness.
The successful increase in capital took place under guidance of IVC Venture Capital AG based in Bad Homburg. IVC is specialized in financing innovative enterprises in the early stage of expansion. In order to finance the growth in a very promising market further liquidity will be provided together with Business Angels and experts in the field.
ValuePrice is one of the first independent institutions offering neutral, transparent and comprehensible calculation and valuation of illiquid and complex financial instruments, and this continuously in great quantity. These are e.g. asset backed securities and other structured products for institutional investors, secondary market products like closed real estate or ship funds, life insurances or bond issues.
As well as using their own developed methods and models like âFinancial Instruments Pricing and Calculation Applicationâ (FIPCA), ValuePrice relies on the collection of financial mathematical formulas of MoosmÃ¼ller & Knauf AG, a partner and investor. This renowned software and consulting house in Hannover has a specific know how especially in the field of fixed income, options, swaps and derivatives.
Presently the financial markets are in constant demand for financial instruments. This development is framed by European, national or internal regulatory demands concerning the valuation of structured products. However, valuations and pricing, internally and externally, are not subject to any guidelines or standards concerning market conformity. Legal demands ( like MIFID, KonTraG, Grundsatz I) and new accounting standards like IAS/IFRS require a common, standardized and daily pricing from neutral and independent companies to achieve transparent and market conform valuations of positions. With regard to market conformity and performance analysis a verification of these valuations is more and more asked for by internal as well as external audits in Dealing and Controlling.
Because of these internal and external regulatory rules, there is an increasing demand for services on pricing and valuation for bank books and customer books, especially in the independent and market-conform quality offered by ValuePrice.
The position keepers are usually not able to calculate the pricing on illiquid products.
All valuations done by them will be tendentious because of their own perspectives and are therefore not objective. The issuers of the instruments do have valuations, who are, however, only prices that will not reflect market conformity. Based on this background the service rendered by ValuePrice as a neutral and independent price-maker of these illiquid and complex financial instruments is becoming more and more indispensable in the market.
Directly after starting its activities, ValuePrice acquired customers like international banks, deposit banks, asset managers and fixed income brokers. With the means generated from the increase in capital in December 2006 the company was able to open an office in Luxembourg in order to participate in the worldâs second biggest market in asset management. ValuePrice S.a.r.l. in Schuttrange will host the front-office and the international sales activities of the company.
âWith our presence in the second biggest Fund-market location in the world, we are very close to many important customers.â CEO Pockrandt explaines.