Cash Flow Model for Private Assets

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BOSTON (Bow-Speed Time-Option Normalized) - a proprietary model for forecasting of private equity cash flows.

Main features:  

• Founded on sound economic principles and broad empirical support.
• Combines the intuition of the Takahashi-Alexander model (2002) with our own research insights, resulting in a robust approach that addresses the needs of the vast majority of investors in private equity partnerships. 
• Incorporates the volatility of the underlying investments to give a more informed investment performance picture, reflecting the inherent uncertainty of investment cash flows. 
• Provides LPs with a measure of the magnitude of potential cash flow shortages in relation to future liabilities (redemptions, pension outlays, capital expenditure, unfunded commitments). 
• Allows GPs to predict the amount and variation of future distributions to optimize capital call schedules and deal flow, as well as efficiently plan the capital resources.