The private equity industry has lacked tailored methods and data to provide true insight into value-at-risk, with available approaches borrowed from other asset classes not entirely suitable to private equity. Built in partnership with leading academic research, eFront VaR is the first ever product to address these issues through simulated NAV and cash flow scenarios using a proprietary bottom-up value-at-risk model for single deals and funds. Leverage eFront VaR’s bottom-up simulation and granular data to turn risk management into a value enhancing strategy.
Manager Specific Assessments
Rigorous Bottom-Up VaR Calculation
Built in partnership with leading academic research, eFront VaR is the first ever product to simulate NAV and cash flow scenarios using a proprietary bottom-up VaR model for single deals and funds, thus eliminating the need for proxies and old aggregated data and thereby promoting greater reliability and accuracy of measurements.
Leverage a comprehensive database containing thousands of transactions since 2000 with detailed information on CF and NAV values, featuring an accurate representation of growth and recession stages.
Intuitive VaR Measurement and Display
eFront VaR features a Monte Carlo Simulation of roughly 10,000 draws based on a pre-imported data set of over 100,000 movements, with results summarized in an easy-to-read histogram.
Tailored Scenario Analysis
eFront’s VaR software allows LPs to feed in their underlying portfolio data, including specific fields such as deal type, sector, age, and performance to date, resulting in realistic scenarios and distribution ranges that they can use to inform investment strategy and portfolio design decisions, such as the impact of making new commitments, secondary transactions and so on.
Compare the risk-return perspective of investments taking into consideration the deal stage, industry, and size in order to optimize your portfolio and risk management through an in-depth understanding of which investments are the main VaR drivers.