Portfolio Benchmarking and Planning in Cobalt
September 24, 2018
September 24, 2018
In today’s fast-paced environment, are your current analytic processes keeping up? Do you spend countless hours running calculations in Excel? Our limited partner (LP) clients today are looking for a consistent, streamlined approach to evaluate portfolio benchmarking and planning. LPs want to:
- Understand their exposures.
- Understand what is driving return movement.
- Benchmark against public and private markets.
- Plan for future commitments.
This process requires sifting through vast amounts of data points. This allows LPs to develop meaningful insights. Did you know that you could save time by conducting portfolio benchmarking and planning directly in Cobalt LP?
Portfolio Benchmarking and Planning Step 1: Upload your data into Cobalt
Ensure that you have your most updated data in Cobalt LP in order to evaluate your investments on a timely basis. For those who rely on templates for uploading their data, make sure that you are uploading the most recent quarter end data for your underlying fund investments.
Portfolio Benchmarking and Planning Step 2: Utilize the Portfolio Review Report to gain a quick snapshot of your portfolio
This report allows you to gain insight into your portfolio’s current allocation through answering questions such as: What are my top fund exposures? How has my portfolio performed by vintage year or style?
Portfolio Benchmarking and Planning Step 3: Analyze what is driving return in your portfolio through value drivers
Value Drivers allows you to understand what funds, geographies or vintage years are driving return in your portfolio. The Value Drivers analysis puts into context the impact a fund or group of funds has on your portfolio by isolating its impact on the overall portfolio by a specific metric (IRR, TVPI, DPI).
For more information about Value Drivers, please refer to our Value Drivers White Paper.
Portfolio Benchmarking and Planning Step 4: Understand how various groupings of your portfolio have performed versus the public or private markets through the PME Benchmark Report or Peer Benchmark Report
The PME Benchmark Report allows you to run an aggregate PME, a PME per fund, and PME by user-determined fund groups. The Peer Benchmark Report allows you to compare a set of funds or individual funds against a private markets quartile benchmark.
For more information about benchmarking, please refer to our Benchmarking White Paper.
Portfolio Benchmarking and Planning Step 5: Utilize the Horizon Model to understand your current cash flow runoff and plan for future commitments
The next step is to start looking at the future of your portfolio using the Horizon Model. The Horizon Model forecasts the expected cash flows and net asset value (NAV) growth of your existing private markets portfolio as well as planned future commitments. The model can also suggest a commitment plan to reach your targeted private markets exposure.
For more information about the Horizon Model, please refer to our Horizon Model White Paper.