As private equity valuations have become subject to increasing review from investors and regulators, certain private equity managers have turned to independent valuation firms to assist in their valuation processes.  The practice, which can be expensive and time-consuming, can benefit managers with hard-to-value holdings.  However, the use of an independent valuation firm in addition to a manager’s internal valuation process remains above and beyond standard industry practice.  In a recent interview with Hedge Fund Law Report, Scott A. Arenare and Joseph P. Cunningham, partners at Willkie Farr & Gallagher and members of its Asset Management Group, shared insight on the use of independent valuation firms by private equity and hedge fund managers.  The interview specifically covered, among other topics, benefits of engaging independent valuation firms, trends in such engagements, allocation of independent valuation expenses and best practices for managers conducting internal valuations.  For more on valuation, see “Three Pillars of an Effective Hedge Fund Valuation Process,” Hedge Fund Law Report, Vol. 7, No. 24 (Jun. 19, 2014).