Private Capital Fund Cash Flows

Private Capital Funds are the most popular partner at the finance dance these days, and for good reason. Access to this investment class is growing, and investors have money to spend: approximately $1 trillion for the Private Equity subclass alone, according to Prequin.

With numbers like that, it’s no wonder that the number of funds and capital raised each year are growing as well. But for these funds to best fit an overall portfolio strategy—to let them lead, if we want to continue our dance metaphor—we have to understand their risks and return characteristics.

FRG has worked with a private capital data collection firm, applying our proprietary modeling techniques, to assist clients with forecasting the cash flows associated with specific fund investments. Our project aims to help investors balance market risk with opportunity cost.

Want to learn more? Click here to download an article that explores potential pitfalls in forecasting the timing and amount of capital calls, as well as our possible solution.