What is a Fair Value. Alternative Investment Fund in Estonia.

A Fair Value is the price that would be received to sell an asset in an Orderly Transaction between Market Participants at the Measurement Date.

A Fair Value measurement assumes that a hypothetical transaction to sell an asset takes place in the Principal Market or in its absence, the Most Advantageous Market for the asset.

For actively traded (quoted) Investments, available market prices will be the exclusive basis for the measurement of Fair Value for identical instruments.

For Unquoted Investments, the measurement of Fair Value requires the Valuer to assume the Underlying Business or instrument is realised or sold at the Measurement Date, appropriately allocated to the various interests, regardless of whether the Underlying Business is prepared for sale or whether its shareholders intend to sell in the near future.

Some Alternative Investment Funds in Estonia invest in multiple securities or tranches of the same portfolio company. If a Market Participant would be expected to transact all positions in the same underlying Investee Company simultaneously, for example separate investments made in series A, series B, and series C, then, Fair Value would be estimated for the aggregate Investments in the Investee Company. If a Market Participant would be expected to transact separately, for example purchasing series A, independent from series B and series C, or if debt Investments are purchased independent of equity, then Fair Value would be more appropriately determined for each individual financial instrument.

Fair Value should be estimated using consistent valuation techniques from Measurement Date to Measurement Date unless there is a change in market conditions or Investment specific factors which would modify how a Market Participant would determine value. The use of consistent valuation techniques for investments with similar characteristics, industries and/or geographies would also be expected.