5 years LDS Partners already!
When we founded LDS Partners in 2011, it was in response to a private equity market that was "making do" with risk management techniques that were often borrowed from other asset classes. We believed that private equity investors deserved a better approach.
Five years on, and even we have been pleasantly surprised by the level of interest and adoption of our proprietary private equity risk management techniques.
So, this is a short note to thank everyone that has been supportive of LDSP as we have worked to bring these new techniques to market. It is not always easy to change existing behaviours, but our experience suggests that either the market was ready for a new approach, that private equity risk managers are an open-minded self-critical bunch, or a bit of both!
During this time, we have learned a lot from our partners and from our clients, resulting in ever more robust techniques for managing and investing in and from private equity funds in Europe.
Based on the solid private equity experience of the partnership team at LDSP, we have developed private equity specific cash flow and performance forecasting methodologies and approaches to risk-return profiling.
These techniques allow our GP and LP clients to develop a sophisticated and nuanced view of:
- Cash-flow projections
- Return expectations
- Liquidity profiles
- Qualitative and quantitative risk-return profiles
- Stress-tested performance and behaviours
In addition to informing commercial decisions and strategy, these insights also allow for more robust stakeholder and regulatory reporting.
We have come a long way in 5 years, but there is much further to go. Private equity risk management techniques remain in their infancy and we look forward to continuing our work with clients and partners over the coming years to ensure risk managers have the right tools for their private equity activities.