CEPRES Develops COVID-19 Portfolio Risk Management Assessment
NEW YORK, June 17, 2020 /PRNewswire/ -- CEPRES offers a Risk Analysis & Rating Dashboard on the CEPRES Platform to support LPs during the Covid-19 crisis in understanding the impact on their portfolio.
CEPRES' Health Check Rating System is based on the CEPRES Platform's flexible analysis dashboarding system and can inform investors on whether their private market portfolio is in good position to face major challenges ahead. The Platform allows the rating of users' portfolios according to a predictive methodology derived on the granular analysis of development pattern of more than 80,000 portfolio company investments during former crises and recovery phases, as well as CEPRES' own economic forecasts.
The observed disruption from the Coronavirus crisis to global supply chains and structural changes will negatively impact traditional, manufacturing and consumer industries, accounting for 60-70% of private equity funds according to CEPRES Market Data analysis. Affected companies will have to cope with efficiency losses, and consequently, lower operating margins.
The rating methodology incorporates economic assumptions that portfolio companies in countries with established markets (approx. 85% of PE-financed companies) will tend to recover faster due to larger governmental and central bank driven recovery programs than investments in emerging markets, which are exposed to higher risks driven by geopolitical adjustments. Systematic risk was generally very high before the current crisis, but CEPRES' rating shows now that correlations between asset performances in traditional areas are further increasing but decoupling from other industries that benefit from the "new normal".
Furthermore, interest rate levels resulting from monetary policy actions – low level in long term – are bound to increase asset valuations in private equity, infrastructure and real estate sectors after the period of the current "perfect storm".
The CEPRES Health Check Rating strives to respond to these insights and will provide rating scores of portfolios in one click, for different aspects, including investment exposure, profitability, valuation, and more.
Investors need simply to upload their portfolio details to initiate the dashboard sharing process.
Find out more about CEPRES Portfolio Health Check: https://www.cepres.com/cepres-portfolio-health-check-covid-19
Commentary:
"It's more important than ever to understand your portfolio in detail and to be able to manage data and make the right predictive. More firms want to make decisions based on data today. COVID-19 has made the need explode, but it is becoming the new normal for the future. It's an objective way to view how a portfolio will perform over time and it will help investors optimize their portfolio strategy. "
Dr. Daniel Schmidt, CEO & Founder CEPRES
About CEPRES
CEPRES is the leading provider of investment analytics & data solutions for private capital markets. CEPRES began in 2001 as the Center of Private Equity Research and was the first to 'look-through' private market funds to underlying deal and asset performance.
Through CEPRES, decision makers can secure their investment data to gain true insights on their portfolio of funds down to single operating assets within a confidential yet fully flexible framework.
To date over 2,750 GPs & LPs have securely exchanged and modelled investment data of over 7,900 funds and 81,700 deals worth over $29,5 Tr. in Enterprise Value.
For further information visit www.cepres.com.
For more information or to schedule an interview contact:
Birgit Wiggert
Tel: +49 (0) 89 232 495 610
[email protected]
SOURCE CEPRES
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