Case study
’Secondary transactions’ simulator
Background
An asset manager considered entering the secondary market for the build up of a portfolio of funds in non-European geographies. The client was not familiar with secondary transactions.
Issue
A solid understanding of secondary transactions was lacking, including price setting, modelling and possible deal structures. There was also a lack of time to learn by doing.
Our intervention
Using real data, LDS Partners simulated a number of scenarios leading to real life cases for pricing, structuring and negotiating the deals. The subsequent workshop led to an extensive and intense interaction with the management and the dedicated team discussing the various scenarios we modelled.
Case study
Integrating the private equity risks
Background
The private equity arm of a large financial institution wished to review its rating system of funds.
Issue
The fund rating system and model used had to accommodate both the specificities of private equity and debt investments plus the requirements of the parent company.
Our intervention
The current system was assessed and new rating parameters were proposed, leading to an approach that accurately measures private equity and debt risks and that can be integrated in the overall risk system of the parent company.