Company

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With the growing allocation to private equity in recent years it becomes critical to find ways to reliably project PE cash flows and value. However, this is challenging due to the structure and illiquidity of the asset class, the scarcity of publicly available information, and the high degree of uncertainty about the size and timing of both contributions and distributions. Moreover, the shift in global trends led to an increasing importance placed on fair value by international accounting bodies and national regulators which require a fundamental change in the valuation approaches to private assets. The cornerstone issue of fair value is that it is ultimately based on judgement, which gives rise to a potentially biased view. To minimize this problem, the valuation analysis must be performed by independent professionals using industry best standards. In-house NAV values are often a useful guidance to value, but ultimately the independence of the party performing the analysis assures the objectivity of the outcome. 

We offer proprietary models for forecasting of private equity cash flows and fair value. 

Our models offer a robust approach that addresses the perspectives of a vast majority of investors in private equity partnerships. 

They incorporate the volatility of the underlying investments to give a more informed investment projected performance picture, reflecting the inherent uncertainty of investment cash flows and the risk aversion of investors. 

Our models are risk-aware, independent from fund managers, compliant with IPEV and AICPA guidelines, and suitable as a comparative methodology for bench-marking across periods and funds. 

They do not compromise on granularity, attention to detail, methodology rigor, integrity of the valuation process and are applicable to traditional private equity deals, and funds, as well as hybrid structures.