For Private Equity funds and Illiquid Assets

A growing need for cash management in Private Equity portfolio management

Investors increasingly allocate assets to alternative strategies, which tend to be illiquid and based on commitments to managers, funds or corporate events. While traditional allocations to liquid assets (equities and bonds) were easy to manage, newer strategies require commitments with impacts on cash levels over many years.

Investors often mis-understand their true commitments and cash requirement for specific timeframes. This results in material over or under-allocation to cash and impact on future portfolio performance and liquidity risk. Fund managers / GPs provide fund level data on past funds cash flows, but very little has been done to allow LPs to model their future cash flow requirements independently. Most investors rely on unstable and uncomplete spreadsheets.

Model your Private Equity funds and forecast the level of cash available in your portfolio

Track properly all your commitments

Your entire portfolio, including both positions and commitments, will undergo meticulous monitoring procedures, ensuring a comprehensive assessment of all associated cash flows. Every capital call, distribution, fee, or dividend will be meticulously categorized and consolidated within your portfolio framework. This initial phase is essential as it provides the model with precise and accurate data specific to your holdings, rather than relying on generic fund or industry information. By capturing the intricacies of your financial transactions and commitments, we ensure that the resulting analysis is tailored to your unique portfolio composition and objectives, enabling more informed decision-making and strategic planning.

Private Equity and Illiquid Assets reporting

Private Equity fund modelling

The model is designed to incorporate all cash flows while minimizing assumptions, ensuring a robust and dependable cash flow forecast analysis. By meticulously considering every capital call, distribution, fee, and dividend, the model provides a comprehensive view of your financial landscape. With a focus on accuracy and reliability, our approach minimizes the reliance on speculative hypotheses, providing you with a safe and trustworthy forecast that you can confidently rely on for informed decision-making and strategic planning. At each portfolio cash flow event, the system:
. Updates each investment (direct investments & securities or funds)
. Updates investors’ actual historical cash flow data
. Determines future cash flows depending on past cash flows and investors’ key variable inputs
. Computes the investment’s Net Asset Value at each date in the future

Forecast of your Reserves of Cash

The system is designed to meticulously model forthcoming cash flows from private equity funds, providing a comprehensive assessment of both anticipated cash requirements to meet commitments and potential distributions. By capturing cash flows from all asset classes, the platform consolidates this information to generate a forecast of future cash levels within your portfolio. This forecast takes into consideration not only capital calls and distributions from private equity funds but also cash flows from other asset classes. Additionally, the model accounts for factors such as credit lines and other cash facilities to ensure the forecast closely reflects your exact investment situation. By providing a holistic view of future cash positions, the platform empowers you to make informed decisions regarding liquidity management, strategic planning, and risk mitigation. With its ability to incorporate a wide range of variables and scenarios, the system enables you to navigate the complexities of investment management with confidence and precision.

Test your Asset Allocation Plans

With our platform, you have the flexibility to craft asset allocation scenarios tailored to your specific investment objectives and plans. For instance, you can input various investment strategies to model potential scenarios. As an illustration, you might simulate an incremental increase in your Private Equity portfolio by 5% annually over the next five years, allowing you to gauge its impact on your cash reserves. This dynamic feature empowers you to explore different investment scenarios, assess their potential outcomes, and make informed decisions regarding asset allocation strategies. By providing a customizable and intuitive framework for scenario analysis, our platform enables you to proactively manage your investment portfolio, optimize resource allocation, and strategically plan for the future with confidence.

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