Manage and Forecast Cash Flows by Simulating Market Risks
Monitor cash flows
The FrontInvest Cash Flow Forecasting module provides investors with powerful means to manage and predict the uncertainty of cash flows inherent to investing in alternative investments managing private equity, real estate and fund of funds. Investors can easily model current and future investments, taking into account the timing of different events and inputs (such as a change of when distributions may be expected, or a change in a fund manager’s liquidity requirements), allowing them to optimize the use of their cash and capital.
- Predict over-commitment in order to optimize asset allocation
- Simulate performance projections at the fund or portfolio level
- Plan for cash needs based on various liquidity requirements
Cash Flow Forecasting is a multi-currency solution with an extensive list of modeling options.
Improve performance with multiple forecasting methodologies
Use eFront private equity software to forecast by asset allocation and improve performance by monitoring the J–curve for a portfolio or fund and structuring liquidity options. Cash flow forecasting can utilize scenarios, changes in foreign exchange rates, and crisis or stress scenarios, enabling a variety of tools to measure the impact of potential events on future cash flows. This module helps to improve asset allocation decisions by simulating the impact of new investments.
The Cash Flow Forecasting module also allows for the roll-up of the cash flow forecasts for individual assets (such as for properties or indirect investments). This powerful capability allows an investor to forecast cash flows at the fund and portfolio level, while taking into consideration various “waterfall” fees within the portfolio and investment structure.
Monitor and reduce investment risk
Cash flow forecasting is completely integrated with the full FrontInvest suite of products, enabling investors to automate select business processes and leverage industry best practices in order to reduce investment risk. Specifically, Cash Flow Forecasting enables various approaches to modeling “what if” simulations to reduce portfolio risk.