Research and Insights

AssetMetrix Insights: LP Forecasting as a sound basis for planning and expectations management

Purpose

The analytics module LP Forecasting provides a sound basis for planning and expectations management. LPs are able to plan returns and cash flows of their private capital portfolios to

  • receive valuable input for their investment and liquidity planning process,
  • calculate and model future returns, and
  • improve expectation management and gain greater acceptance of private illiquid investments across their organization.

The cash flow and NAV forecasting of the portfolio is an aggregation of forecasts based on every underlying fund of the portfolio. The model takes the individual status of each fund (e. g. fund’s age, call ratio, distributions to date, etc.) into account and combines it with a statistical model based on historic observations of comparable vehicles (with respect to private capital segment, region, vintage year, etc.).