CURRENT CHALLENGES

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Existing methodologies computed from fund level information provide limited insights into risk-return relationships.

Existing methodologies computed from fund level information provide limited insights into risk-return relationships.

Available methodologies do not reliably assess and compare the risk of different fund managers.

Available methodologies do not reliably assess and compare the risk of different fund managers.

LPs face increasing regulatory pressure to provide reliable and accurate VaR measurements.

LPs face increasing regulatory pressure to provide reliable and accurate VaR measurements.

Stand-alone PE funds can not apply public markets methodologies because of scarcity of data.

Stand-alone PE funds can not apply public markets methodologies because of scarcity of data.

Common approaches to VaR measurement result in overstatement of volatility and correlation due to the use of unrepresentative proxies.

Common approaches to VaR measurement result in overstatement of volatility and correlation due to the use of unrepresentative proxies.

Commonly available measurement techniques struggle to accommodate private equity’s specific characteristics.

Commonly available measurement techniques struggle to accommodate private equity’s specific characteristics.

KEY FEATURES

RIGOROUS BOTTOM-UP VAR CALCULATION METHODOLOGY

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 value-at-risk 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

ACCESS TO A UNIQUE AND GRANULAR DATA SET

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.

SIMPLE MEASUREMENT AND DISPLAY OF VALUE AT RISK

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 VaR 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.

PORTFOLIO OPTIMIZATION

Compare the risk-return perspective of investments taking into consideration the deal stage, industry, and size in order to optimize your portfolio through an in-depth understanding of which investments are the main VaR drivers.

KEY BENEFITS

eFront VaR provides a robust and reliable measure of risk for investment and portfolio managers, enabling effortless compliance with emerging regulatory requirements.
Explore the benefits below to see how eFront can improve your analytical capabilities
A clean & modern front end experience means investor reporting is simple

GREATER CONFIDENCE IN VALUE AT RISK MEASUREMENT

Benefit from a powerful bottom-up methodology developed from state of the art PE academic research.
Account summaries, tables, charts, maps are all a click away

BOOSTED TRANSPARENCY ON RISK EXPOSURE

Reliably measure and communicate your value-at-risk for a specified confidence interval and period of time.
Device-specific interfaces providethe best experience anywhere, anytime

ENHANCED DECISION MAKING

Optimize your portfolio based on robust quantitative measurements.
Secured document viewing and publishing makes it easy to keep your investors in the loop

STREAMLINED COMPLIANCE PROCEDURES

Quickly and easily comply with regulatory requirements and industry standards through eFront VaR.
Stress-free portal services and multilingual support keep your operations moving forward smoothly

TIME SAVINGS

Leverage an intuitive interface and database to quickly generate cutting edge VaR assessments.
Gaining a more sophisticated view of risk is the holy grail of private equity fund teams. The peculiarities of LP investing means that generic risk solutions are of limited value. eFront VaR is an indispensable tool, allowing us to plug in our own unique portfolio information and providing scenarios that can inform strategy, not just compliance and reporting.

Head of PE Funds
Top 50 European LP

TESTIMONIAL

Oliver Gottschalg,
Associate Professor, HEC Paris

KEY METRICS

1-2
days to get the system up and running
100,000
transaction movements in the underlying database, and growing
10,000
random draws for each VaR calculation
8
dimensions available by which to tailor VaR measurements