Market Equivalent Statement (MES)

Private assets need a recurring market-equivalent price if they are to be understood on the same ownership basis as liquid assets.
The Market Equivalent Statement establishes that reference point through a recurring and consistent market-based pricing discipline.
This page shows the method behind that price, and why consistency matters more than precision.

why mes exists

Four assets. Four mandates. One portfolio.

MES makes private holdings economically comparable across the ownership portfolio.

Liquid Assets

Understood through market prices

Private Holdings

Understood through MES

Institutional Comparability

One ownership standard across every holding, liquid or private.

What Institutional Comparability Establishes

Consistent Pricing

Each private holding is priced through the same recurring method.

Holding Comparability

Private holdings can be understood on the same market-equivalent basis.

Period Traceability

Changes in value can be explained consistently from one period to the next.

Portfolio Readiness

Each holding is expressed in a form that can be consolidated through MEPS.

The Waterfall, Made Visible

Market pricing reflects the economics and uncertainty a buyer would assess. MES makes those factors visible and traceable over time.
MES is not a single number pulled from a model. It is built from three named, visible components:

Base Price

EBITDA × Multiple

Strategic Clarity

Risk Control

Data Trust

Governance Premium

Discount avoided

Institutional Price

Traceable, defensible

Base Price — earnings (EBITDA) multiplied by a market-based multiple, a common starting point in private market pricing.

Governance Premium — Strategic Clarity, Risk Control and Data Trust are factors that can influence the uncertainty reflected in market pricing.

Nothing in this formula is hidden. A CFO can ask which of the three Governance Premium factors moved and receive a specific answer.

Consistency Creates Comparability

A private company cannot be priced with the same certainty as a listed share. That is correct — and it misses the point.

A listed share's price is not an objective truth either. It is the market's current consensus estimate, revised constantly as new information arrives. What makes it usable for governance is not that it is perfectly accurate — it is that it is produced the same way, every day, by the same disciplined process.

MES applies a consistent market-pricing discipline to private holdings. The purpose is a reliable reference point that can be followed from period to period.

What Makes It Defensible

Traceable from period to period.

The strength of MES is not that any single Institutional Price is exactly right. It is that the same method, applied consistently, makes change traceable. When the price moves from one period to the next, the reason is visible: did earnings change, did the multiple move with the market, or did governance itself improve or weaken.

That traceability is what a single appraisal, done once and revisited only under pressure, can never offer.

What This Enables

MES establishes the market-equivalent position of each private holding. MEPS then brings those positions together with the rest of the ownership into one combined ownership view.

That consolidation is the Market Equivalent Portfolio Statement.

Once every holding is expressed through a common ownership standard, the portfolio can be consolidated into MEPS.

The Ownership Framework

Strategic Mandates

Ownership Architecture

Market Equivalent Statement

Market Equivalent Portfolio Statement