Project
Reading 100 asset lines as one portfolio
A risk and allocation review for a Forbes 100 principal, balancing what the operating businesses needed against what the financial portfolio could earn.
The problem
A large private portfolio grows by accumulation. Positions are added for good reasons, one at a time, over many years. The challenge is taking all of the different asset categories and consolidating them into a single, manageable and understandable view of risk and exposure, within the context of the wider family operating businesses.
That last part is what makes this different from an ordinary asset allocation exercise. The group operating companies periodically needed capital, and where that capital came from changed what the portfolio could sensibly hold.
What I did
I worked through the individual asset lines across listed equity and debt, hedge funds and private equity, and built a framework that treated two requirements as one problem: the return the portfolio should be earning, and the call the operating businesses might make on it.
The risk measures were built specifically to sit across both.
What changed
The recommendations were expected to deliver around a 10 per cent increase in earnings from the portfolio, and to improve access to capital from it. In retrospect they have outperformed that expectation considerably.
Why this is relevant to your business
This engagement was done first as a manual analysis, in order to understand deeply what reliable automated reporting would need to do.
More work
- A warm lead engine that catches buying signals as they appearPublic buying signals, caught daily, judged for real intent and delivered as named people with a reason to call.
- A reporting platform that cut budget preparation by around 80 per centA single place where an industrial holding group could see its results, build its budgets and track what it was actually spending.