SECTOR FOCUS - ASSET MANAGEMENT
Public and private assets move to different beats.
Keep the risk in step.
Managing a blended public/private portfolio with capital commitments requires unique tools to embrace the unique timelines. It is imperative that you are able to construct systematic strategies, forecast capital cash flows, and optimize your commitment pacing across your entire book. We have those tools for you.
The portfolios
Institutional portfolios make demands on your processes
If your risk processing can’t handle the many paces of an institutional portfolio, you don’t know how you are tracking against your targets and limits.
Our digital teams are built exactly for this, bringing every asset into one comprehensive view, showing you where you stand at all times.
Foresight
Averages don't help when no single fund's cash flows ever look like the average. You need the realistic range of outcomes, not just the expected value.
Our approach: We provide the capability to simulate the full range of likely capital calls and distributions, and get it refreshed whenever you need it.
Liquidity Discipline
A capital call doesn't wait for a market to cooperate. You need to fund it without breaching your own limits.
Our approach: Our digital team can model your funding sources and rebalancing rules alongside your cash flow forecast, so commitments stay inside policy.
Systematic Rigor
A repeatable process is only as good as how closely it's watched. You need drift and breaches caught the moment they happen, not at quarter-end.
Our approach: Our digital team runs your process and also monitors the process itself, alerts you if anything goes off-track, and makes recommendations on how to remedy it.
Unified Reporting
Five spreadsheets should never produce five versions of truth. You need one number everyone trusts.
Our approach: We consolidate your portfolio and cash flow data in one place so there is one source of truth.
digital teams
Risk Blueprints for Asset Management
Every risk process our digital teams run starts with a Risk Blueprints are the instructions for the tasks and the order in which the digital teams must do them to complete end-to-end risk processes..
Our digital teams already have blueprints for the following essential risk processes:
- Managing Risk Premia Portfolios: Create, optimize, and track systematic risk premia strategies with automated alerts when portfolio thresholds are breached
- Forecasting Private Capital: Model the probability distribution of cash flows from private equity, debt, and real assets using machine learning techniques that outperform traditional models
- Optimizing Pacing: Plan future private capital commitments with a probabilistic view of meeting target allocations while staying inside policy limits
- Reporting Analytics: Turn portfolio and cash flow data into clear, customizable dashboards and reports built for your investment team's decision-making cadence
under the hood
VOR Risk Intelligence Suite
Our digital teams and Risk Blueprints work on whatever platform your institution runs today. They also integrate naturally with FRG's own VOR Risk Intelligence Suite, which gives asset managers and institutional investors a single platform for the full range of portfolio risk management. Whether your book is public, private, or both, VOR brings the data and analytics to your team in one piece, and one place.
portfolio construction
VOR Risk Premia
Create, optimize, and track systematic risk premia strategies across asset classes from a single platform. Automated alerts flag portfolio drift and threshold breaches the moment they happen, so your team is managing the strategy, not reconciling it after the fact.
Cash flow forecasting
VOR Private Capital Forecasting
Model the probability distribution of capital calls and distributions for private equity, debt, and real asset funds, using machine learning models built on macroeconomic and capital markets data. Updated quarterly and built on over 20 years of fund history, it gives you a forecast designed for planning, not just historical reporting.
Commitment Planning
VOR Pacing Optimization
Plan future private capital commitments against your strategic allocation targets and IPS limits, using a non-linear optimizer built on PCF's cash flow simulations. Test multiple economic scenarios to see how a commitment plan holds up before you commit capital.
Portfolio Reporting
VOR Reporting
Turn portfolio and cash flow data from across your book into a single source of truth, with interactive dashboards and scheduled reports built around your team's cadence. One platform means your team, your committee, and your board are always looking at the same numbers.
RESOURCES
Go deeper on private cash flows
WHITE PAPER
Private Capital Fund Cash Flows
How accurate cash flow modeling helps investors make smarter secondary-market decisions.
TECHNICAL PAPER
Optimal Pacing for Private Capital Portfolios
Learn more about FRG’s pacing model, which uses PCF cash flows along with non-linear optimization to help clients construct their pacing plans.
FAQ
Frequently Asked Questions
What types of asset managers and institutional investors benefit from using digital teams?
Digital teams are used by asset managers, sovereign wealth funds, pension funds, endowments, foundations, family offices, funds of funds, banks, and insurers. They work for organizations of every size, from small investment teams managing a handful of funds to large institutions running complex, multi-strategy books.
Can the digital team help us manage a risk premia portfolio?
Yes, the digital team has the blueprint to monitor a portfolio against a target. It will alert you of threshold breaches and can provide recommendations for how to rebalance or adjust leverage.
Do we need to replace our current system to deploy digital teams?
No, the digital teams are designed to work with what you already have even if that means collecting data from multiple sources and using a range of applications for processing.
Can the digital team give us a combined view of our public and private market strategies?
Yes, the digital team can bring all kinds of asset classes into a consolidated view including systematic public-market strategies, private fund commitments, fixed income, and public equity.