The ValueBridge App is modern web application that brings rigorous private equity value creation mathematics to real-world portfolio sizes. It accurately measures how leverage, operational improvements, and market forces impact returns, then instantly aggregates value drivers by deal, fund, manager, and limited partner investment portfolio.
Watch a 6-minute introduction to the App’s features and capabilities:
Proven Mathematics
Mike Reinard has consulted with private equity managers and limited partners for over 20 years. He designs return and value creation models that differentiate managers and illustrate core investment and value creation strategies. These models have proven influential in fundraising and investor relations contexts and defensible in limited partner due diligence and SEC examinations.
The ValueBridge App utilizes the best of these models, which have been documented extensively in resources below:
Auxilia Mathematica
Started as a private equity math blog in 2019. Provides free articles, videos, Excel templates, and online calculators to over 800 registered users on six continents, including investment professionals at leading private equity firms and institutional asset managers. Go to Auxilia Mathematica.
Private Equity Value Creation Analysis
Published in 2021. Defines the core mathematical frameworks. Has sold over 1,000 copies worldwide and consistently ranks in the “Top-100 Private Equity” books on Amazon.com. Go to Amazon author page.
YouTube Channel
Launched in 2022. Hosts 100+ private equity-focused videos with over 1,400 subscribers, 55,000 views, and 2,000 hours of watch time. Go to YouTube channel.
ValueBridge.net
Started in 2023 as a practical resource for modeling complex transactions. Provides 70+ Excel templates pre-built for private equity scenarios, supported by concise video instruction, step-by-step examples, and error-checking tools.
Picking Up Where Excel Leaves Off
Excel does not scale for advanced value creation models with custom market benchmarks. The ValueBridge App applies the same proven mathematics to portfolios of hundreds or thousands of companies. Data is stored in the cloud and calculations run server-side for instant results. It is a secure, multi-tenant environment powered by Supabase authentication and row-level security, with role-based access controls to maintain data quality.
Built for Real-World Scenarios
Designed for maximum insight with minimum data entry and upkeep. Detailed value bridges are built from only 4–6 capital structure and P&L inputs per portfolio company transaction. Most metrics are already available in fund reporting and marketing materials, which limits data requests to managers and deal teams. Models handle complex scenarios including multiple inflows and outflows: follow-on equity and debt financings, add-on acquisitions, dividend recapitalizations, and similar events.
Proper Leverage Normalization
Automatically accounts for the impact of portfolio company leverage on returns – something many private equity value creation models still get wrong. Enables meaningful comparisons even when companies have very different balance sheets. In LBOs, measures debt’s amplification of equity gains and losses plus cash generated to pay down debt. In growth deals, measures cash consumed to fund growth and its dampening effect on equity gains and losses.
Market versus Manager Decomposition
Automatically benchmarks performance against broader market trends using custom addressable market, revenue multiple, EBITDA multiple, and sector debt datasets. Apply the same market data across hundreds of deals for consistent attribution, or fine-tune metrics by portfolio company sector and niche to isolate true manager-driven returns. Value bridge models are superior to PME approaches due to greater flexibility and company-level leverage normalization.
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