This page contains important information about the limitations of Lodestar valuation reports. Please read carefully before relying on any valuation analysis.

Effective: January 15, 2026

Reliance & Limitations

Lodestar valuation reports are prepared for specific purposes and subject to important limitations. Understanding these limitations is essential for appropriate use of our analysis.

Intended Use

Lodestar valuation reports are prepared for the specific client and purpose stated in each engagement letter. Reports may be used for:

  • Internal portfolio valuation and marking
  • Secondary transaction price discovery
  • Board-level decision support
  • LP reporting and communication
  • Regulatory compliance documentation

Reports should not be used for purposes beyond those specified without our written consent.

Not Investment Advice

Lodestar valuation reports do not constitute investment advice, a recommendation to buy or sell any security, or a solicitation of any transaction. Our analysis represents an independent assessment of value based on our methodology—it is not a prediction of future prices or a guarantee of any particular outcome.

Data Limitations

Our valuations are based on:

  • Information provided by clients and issuers
  • Publicly available information
  • Proprietary databases and market intelligence
  • Third-party data sources

We do not independently verify all information received. Our analysis assumes the accuracy and completeness of information provided. We note data quality and source grades in each report.

Valuation Uncertainty

Private market valuations are inherently uncertain. Unlike public markets, there is no continuous price discovery mechanism. Our valuations represent our best estimate of fair value at a point in time, expressed as a range with associated confidence levels.

Key sources of uncertainty include:

  • Limited transaction data for comparable companies
  • Information asymmetry between buyers and sellers
  • Illiquidity and transaction costs
  • Company-specific factors not fully captured in our analysis
  • Market conditions that may change rapidly

Point-in-Time Analysis

Each valuation reflects conditions as of a specific date. Market conditions, company performance, and other factors may change materially after the valuation date. Reports should not be relied upon for periods beyond the stated effective date.

Methodology Limitations

Our protocol is designed to be rigorous and transparent, but no methodology can capture all relevant factors. We document our approach, key assumptions, and sensitivities in each report. Users should review these disclosures and consider whether our approach is appropriate for their specific use case.

Third-Party Reliance

Our reports are prepared solely for the benefit of our clients. Third parties who obtain access to our reports do so at their own risk and should not rely on them without engaging Lodestar directly. We assume no duty or liability to any third party.

Regulatory Status

Lodestar is not a registered investment adviser, broker-dealer, or accounting firm. Our reports are not audited financial statements and should not be used as a substitute for professional accounting, legal, or investment advice.

Questions

For questions about the limitations of any specific report or our methodology, contact us at analysis@lodestar.finance.