Measure the equity return impact of variable-cost ESG initiatives and their influence on portfolio company revenue.
Measure the equity return impact of fixed-cost ESG initiatives and their influence on portfolio company valuation.
Build a cross border return matrix to rapidly evaluate GP-driven returns vs. market forces in private equity portfolios.
Quickly measure the market vs. manager IRR, with a handful of market multiple, addressable market, and FX data points.
Measure GP value-add after the impact of market multiples, addressable markets, and foreign exchange rates in a cross border value bridge.
Private equity value creation models used by GPs and LPs, and even academic and industry researchers, usually fail to capture how debt amplifies equity gains and losses. Fortunately, a broken value bridge can be fixed quite easily…
If you plan to use private equity value creation models to understand the sources of Fund or GP returns, you should always include a value driver that accounts for equity dilution and concentration.