A multi-step Monte Carlo framework generates many thousands of simulations of your investment cash flows.
The model captures the stochastic dynamics of calls, distributions and NAV in each individual quarter and across the entire life of the fund, taking into account the correlation structure across funds of different types.
Go beyond forecasting expected cash flows: understand what happens in the tails of the distribution and plan for worst-case scenarios at your chosen confidence level.
Understand how your overall risk of loss evolves at each time step, over the short, medium and long term.
Comply with regulatory requirements.
Maximize your portfolio’s expected return for the level of cash-flow shortfall risk you are willing to bear.
Why it's special
Private market investors care about cash. The model opens up the full spectrum of scenarios an LP may face in the future, providing a tool to manage cash flows stochastically, optimize portfolios of private investments, measure risk of loss and comply with regulation.