How does a valuation reach an LP statement?
Last reviewed: 17 September 2026
Through six links. Evidence with a date, a methodology chosen for the asset and its stage, review and challenge, an approval that sets the valuation of record, an accounting entry allocated across capital accounts, and the statement the investor reads. The chain should be traceable in both directions. It usually breaks in the middle, because evidence arrives by email, the review happens in a meeting and the approval is a note, so nothing links the reported figure to what supported it.
Most valuation disputes are not disagreements about method. They are an inability to show, quickly, what the number was based on and who signed it off.
The links that fail most often are review and approval, because they are human moments rather than documents. Capturing them as they happen costs seconds. Reconstructing them a year later costs days, and sometimes cannot be done at all.
Reuben AI holds the chain in one place so the reported figure carries its own provenance. Fund administration can stay where it is. What changes is that the answer to "where did this come from" is already written down.
How Reuben AI compares
The six links, and what typically breaks each one.
| Attribute | Reuben AI | Common failure |
|---|---|---|
| Evidence | Attached with a date and source | Arrives by email, never filed |
| Methodology | Recorded against the asset | Lives inside one person's model |
| Review | Captured as it happens | A meeting with no artefact |
| Approval | Named decision sets the valuation of record | An informal note or verbal sign off |
| Accounting entry | Allocated across capital accounts | Re-keyed into a separate system |
| LP statement | Traces back to the evidence | A figure with no path behind it |
Frequently asked questions
Who sets the valuation of record?
The general partner, under the process in the fund's own documents, often with a valuation committee and in some cases external input. The specific governance should be written down and followed consistently rather than case by case.
What valuation standards apply?
That depends on the fund's reporting framework and jurisdiction, and it should be confirmed with your auditor and counsel. This page describes the process chain rather than a specific standard, deliberately.
Do unrealised marks need the same rigour as realisations?
Yes, and arguably more, because there is no transaction to point at. Unrealised marks are the figures an LP is most likely to question.
Can an AI agent set a valuation?
No. An agent can assemble evidence, apply a recorded methodology, surface inconsistencies and draft the memo. Setting the valuation of record is a human decision that should be recorded as such.
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