CEPRES Predictive Intelligence uses proven stochastic forecasting and new AI-based methodologies to help private market investors better manage future cash flows and portfolio risk
NEW YORK: OCTOBER 20, 2022: CEPRES — the leader in private market investment technology and data — today announced the launch of CEPRES Predictive Intelligence, an enhanced, future-oriented portfolio management suite based on CEPRES’s proven and backtested forecasting technology. CEPRES Predictive Intelligence enables investors to easily analyze existing, or plan complex new, portfolios by running stochastic forecasts on cash flows and stress testing portfolio compositions to optimize asset allocations for any market condition.
With increasing capital dedicated to illiquid private market strategies combined with today’s growing complexity of portfolios and market uncertainties, many institutional investors – pension plans, insurers and sovereign wealth funds – face difficulty planning future liquidity and managing increased risk management regulatory requirements. CEPRES Predictive Intelligence delivers sophisticated Monte Carlo simulation-based methodologies with the highest accuracy to predict future portfolio developments and their probabilities, far outpacing simple linear models.
CEPRES Predictive Intelligence allows investors to dive deep and make accurate future predictions by forecasting cash flows, IRR/TVPI returns, NAVs and more. Users can also conduct macro-shock scenarios, such as interest rate hikes or currency depreciation, to stress test their portfolio strategy and react to market conditions.
CEPRES Market Intelligence feeds the predictive analytics engine of CEPRES Predictive Intelligence with intelligence about systematic empirical trends. CEPRES Predictive Intelligence uses over 1,000,000 proprietary cash flows from over 107,000 PE-backed companies across nearly 11,000 funds to generate 100,000 potential scenarios measuring market versus fund-specific impacts. CEPRES Predictive Intelligence's methodology has been backtested in over 300 real-world cases over 20+ years, offering investors the most accurate, proven forecasting methodology.
CEPRES founder & CEO Dr. Daniel Schmidt remarked, "With rapidly increasing inflation and geopolitical risks impacting asset and liability management and threatening portfolio performance, understanding present and future risk to forecast returns are more critical than ever. CEPRES Predictive Intelligence enables investors to run the best forecasts with a single click of a button instead of needing an expensive black box project."
The launch of CEPRES Predictive Intelligence follows a historical year for CEPRES. CEPRES Market Intelligence private market data crossed the 100,000 PE-backed company threshold and now represents more than $40 trillion in value. CEPRES launched Fund Screener, which the industry has already used to underwrite significant commitments. CEPRES appointed numerous executives amid a period of hypergrowth and most recently announced its partnership with Qontigo to develop a suite of private market factor risk models for unique insights into private capital fund risk in multi-asset class portfolios.
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