Valuation Technique for Hedge Funds

In the realm of alternative investments, valuation techniques are critical for assessing the worth of different assets. One common approach is the Discounted Cash Flow (DCF) method, which estimates the value of an investment based on its expected future cash flows. Another technique is using comparable sales, often employed in real estate, which looks at sales prices of similar properties.

When it comes to valuing a hedge fund that invests primarily in illiquid assets, which of the following valuation techniques is most appropriate for accurately reflecting the value of the fund's investments?