Mr. Patel holds the designations of chartered financial analyst (CFA) and accredited senior appraiser (ASA). In addition, he holds a bachelor of science degree from the University of Toronto, and a master of business administration degree from Canisius College.
VRC’s PJ Patel on Innovation, Integrity, and the Future of Valuation
As part of the IVSC AGM 2025 in New Delhi, valuation leaders from across the world will come together to explore how the profession is evolving in response to new market dynamics, technologies, and client expectations. Ahead of the panel discussion on “The Future of the Valuation Profession”, we spoke with PJ Patel, Co-CEO of VRC — a global valuation advisory firm and a sponsor of this year’s AGM.
In this conversation, PJ shares his perspectives on the changing landscape of private markets, the growing role of data and AI, and the importance of professional judgement and global standards in ensuring valuations remain credible, comparable, and relevant in a rapidly transforming world.
Over recent years we’ve seen rapid growth in private investing (late-stage VC, growth equity, direct deals, etc.). From your vantage point at VRC, how have shifts in private markets changed the way clients think about valuations (e.g. frequency, discounting, benchmarking)? What challenges do these pose to applying traditional valuation models?
The rapid expansion of the private markets has shifted how we are seeing clients approach valuations. The traditional cadence of quarterly or semi-annual valuations is evolving, and many clients now expect more frequent reporting – in some cases monthly or weekly – to better monitor asset dynamics, support liquidity decisions, and respond to increased LP transparency demands. However, we also often counsel our clients that more frequent valuations should be grounded in judgment as opposed to a mechanical reactivity.
Common valuation challenges include illiquidity, complex structures, and conversion features. Choosing the appropriate valuation method requires expert judgement reflecting the market environment, investment structure, and purpose, especially in periods of uncertainty and volatility. VRC has a 50-year history supporting private market participants. Since 2020, we have been directly involved in over 5,000 deals and have valued over 100,000 securities. This deep proprietary dataset captures and identifies structures and trends in deals, multiples, and a full suite of additional financial metrics. This allows VRC to deliver timely, detailed, and transparent valuations private market clients expect.
”The traditional cadence of quarterly valuations is evolving—many clients now expect monthly or even weekly reporting.
You interact with a broad client base—from private companies to public firms, from PE sponsors to boards. What trends or “asks” are you hearing most from clients regarding their evolving valuation needs? (E.g. more frequent mark-to-market, forward looking metrics, scenario modelling, real-time stress testing.) How is VRC adapting to meet those needs?
All of the above. VRC continues to expand its valuation practice. Our proprietary data‑analytics platform incorporates a growing number of market feeds and macro‑economic drivers, allowing us to deliver client reports with both fair‑value calculations and sensitivity tables for stress testing and scenario planning. We have also cut the turnaround on delivering client reports. Timely and robust data helps clients improve decision making and risk management. We are currently providing daily marks for a number of clients and expect this to grow.
PJ and colleagues on the IVSC’s Advisory Forum Working Group meet in Hong Kong during the IVSC AGM
Given VRC’s strength in valuing intellectual property, intangible assets, brands, etc., do you see a shift in how clients and markets regard those assets? Are there specific ‘new’ asset types or business models that are especially challenging (or exciting) from a valuation perspective?
The widening gap between market value and book value signals the rapid transition away from a brick-and-mortar economy. Both FASB and IASB are evaluating the relevancy of existing intangible asset guidance. Stakeholder feedback and initial discussions indicate additional disclosure rather than balance sheet recognition is the likely outcome.
In our PPA work we are identifying and valuing a broader array of intangible assets for which value drivers can be industry specific. Extensive documentation to support intangible valuations is required to satisfy auditors, tax authorities, and other stakeholders.
PJ Patel addresses the IVSC Advisory Forum during the 2024 AGM in Hong Kong.
What role is technology—and in particular AI / machine learning—playing (or poised to play) in the valuation profession? Are there parts of your process that you believe can or should be automated? Conversely, where do you see human judgment and professional experience remaining irreplaceable?
Expert judgement is more critical than ever in an AI world. VRC believes AI should augment human expertise and not replace it. We are prioritizing thoughtful integration, recognizing both the technology’s strengths and limitations. Our focus is on AI tools that streamline routine tasks, enhance efficiency, and scalability. VRC’s goal continues to be the timely delivery of reliable, robust valuations to clients.
”The widening gap between market value and book value signals the rapid transition away from a brick-and-mortar economy.
As more firms begin to use algorithmic models or data-driven valuation tools, how can we ensure those tools are transparent, auditable, and aligned with valuation standards? What guardrails or governance structures are necessary in your view?
The existing valuation governance framework remains relevant, yet it should evolve to address AI-specific risks. AI tools can produce “hallucinations,” outputs that appear plausible but lack factual basis. Recent high-profile misses have caused both company and industry reputational damage. Areas we suggest for consideration include:
- Transparency – Communicating clearly where and how AI is used in the valuation process.
- Governance – Boards may need new expertise to accurately assess AI opportunities and risks to ensure alignment with organisational strategy.
- Legal – AI usage must comply with changing data protection laws, which can vary widely by jurisdiction.
- Audit & Review. The dynamic, predictive nature of AI differs from the structured approach of existing models. This necessitates thoughtful consideration of appropriate review, back testing, validation, and recalibration procedures. AI audit trails are slowly developing and may require updated review and escalation controls with sufficient supporting documentation to justify valuations to regulators and auditors.
You wear multiple hats in the valuation ecosystem—practitioner, ASA member, IVSC AFWG representative. In your view, what is the most critical role that professional bodies play in strengthening valuation quality and credibility? Where do you see the biggest gaps or opportunities for collaboration across national or global organisations?
Valuation professional bodies all share the common goal of elevating confidence in our industry and our practitioners. IVS, USPAP, EVS, and Red Book all share core valuation principles. Regular dialogue between IVSC and local valuation authorities to harmonise or bridge variations in standards will result in more comparable valuations globally. Including local standard setters and regulators in the development of IVS 2025 was a positive step and the Valuation Webinar and Dialogue Series is a great forum for direct and timely feedback on alignment.
One of IVSC’s missions is to promulgate and promote IVS globally. From your experience with cross-border engagements through VRG and VRC, what are the practical obstacles to more consistent adoption of IVS (e.g. local regulation, market culture, capacity)? How might IVS evolve to be more usable across jurisdictions while retaining rigor?
IVSC has made noteworthy progress, with IVS adopted in over 100 jurisdictions. Adoption that requires legislative reform will continue to be a challenge given competing/changing governmental priorities. We encourage IVSC to pursue additional collaboration opportunities with national bodies to harmonize differences with local standards and continue educational and awareness efforts that have been very effective in promoting the benefits of consistent global valuation standards.
”For us, valuations go beyond a compliance exercise—they help clients identify value drivers and guide smarter decisions.
Valuation is sometimes viewed as a commoditisable service or even ‘price-shop’ engagement. How do you maintain and signal the quality, ethical rigour, and defensibility of VRC’s work in a competitive market? What steps would you like to see the wider profession adopt to reinforce those attributes?
For us, valuations go beyond a compliance exercise. Effectively communicating our findings help clients identify value drivers, benchmark performance, and provide insights that guide smarter decision-making. VRC is 100% focused on valuation, which eliminates any potential conflicts of interest. Another differentiator is our people. Our managing directors have an average tenure of 15 years, and we invest heavily in training and credentialing (CFA, ASA, CPA) ensuring our teams can deliver at the highest levels.
Looking ahead, over the next 5–10 years, how do you see the role of a valuation firm like VRC evolving (or needing to evolve) in the broader financial ecosystem (e.g. advisory, risk, ESG, scenario analytics)? Are there adjacent capabilities (e.g. predictive analytics, valuation underwriting) you see as logical expansions?
Technology adoption rates continue to grow exponentially making 5- to 10-year predictions challenging. Our focus is to ensure VRC maintains an adaptive, multi-modal talent pool and an organizational design to thrive, whatever the future holds.
Finally, for emerging valuation professionals – or firms in emerging markets – what advice would you give about building credibility, technical excellence, and relevance in a changing landscape? What habits, mindsets or investments do you believe are essential for success in the next decade?
Valuation remains a vibrant profession with strong, long-term prospects. While AI will likely automate routine tasks and bring efficiencies, it cannot replace the judgment and communication skills that define our field. Aspiring valuation professionals should cultivate deep technical expertise, clear communication abilities, and a commitment to continuous learning. In doing so, they will position themselves for success in the decades ahead.