Conference Commentary: Asset and Wealth 2017 Boston Alternatives

By | Cobalt GP, Commentary, Private Markets Industry Insights | No Comments

Kelli Stauff is the VP of Finance for Cobalt GP. An auditor by trade, Kelli handles everything from customer subscription plans to budgeting and accounting for our firm. Data is a big part of everything she does and she regularly works with both Cobalt and spreadsheets to manage and analyze various parts of our business, she is a data expert. She recently attended the “Asset and Wealth 2017 Boston Alternatives” conference hosted by PwC and we asked her to share with us her thoughts and experiences from the event. Here’s what she had to say: Last week, I attended the…

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Getting Your Data into Cobalt GP

By | Cobalt Data, Cobalt GP, FinTech, Private Equity Technology, Product Updates | No Comments

Private fund managers implement Cobalt to improve their processes around data collection, internal portfolio analysis, and client reporting. We begin by helping managers streamline their portfolio company data collection process, whether it’s through an enhancement of their current process or a completely new workflow. From there, we work closely with our clients to get all of their relevant historical portfolio and fund data into Cobalt and set-up processes that ensure the data flows seamlessly into the platform on a go-forward basis. Below is a quick rundown of the 3 most common ways we can get your data into Cobalt: Spreadsheet…

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Doing More with Data Part I: What GPs Can Learn from Data Science and Data Storytelling

By | Cobalt GP, Commentary, Investor Relations, Private Markets Industry Insights | No Comments

In a recent study published by the Chestnut Advisory Group, institutional investors were interviewed to understand what they value most in their quarterly reports. Not surprisingly, many found their quarterly reviews lacking. Some were drowning in a data overload. Yet others suffered from redundancy and over-simplification. Above all, what investors really wanted was a clear and concise story built upon data that helped them understand how their managers’ investment strategies and processes drove performance. While the Chestnut study is focused on hedge fund reporting, this problem absolutely still applies to the private equity space where GPs can be just as…

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What’s New with Cobalt: Portfolio Company Analytics, Deal-Level Comps, Custom Colors, and More

By | Business Intelligence, Cobalt GP, FinTech, Portfolio Company Analysis, Private Equity Technology | No Comments

We don’t spend a lot of time talking about ourselves on our blog, but as 2017 comes to an end we want to share some exciting new highlights from our product. What is Cobalt GP? Cobalt GP is a technology platform that private fund managers use to unlock their portfolio company data, develop insights, and streamline workflows with automated and customized reports and charts. What Makes Cobalt GP Unique? A recent article in the Wall Street Journal highlighted the importance of finance teams moving out of Excel. Cobalt is the only web-based calculation engine built for the private markets that…

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Q2 2017 Preliminary Bison Benchmarks now live on Cobalt GP

By | Bison Benchmark, Cobalt Data, Cobalt GP, Private Equity Benchmarks | No Comments

Published on November 16, the preliminary Q2 Bison Benchmarks are now live on Cobalt GP. The proprietary benchmarks, which cover approximately 5,800 funds and $5 trillion of value, are maintained by Bison’s Research Team and reconstituted each quarter to ensure an accurate and relevant representation of the private markets. Over the past year, the data set has grown by over 800 funds across all strategies. The finalized benchmarks are slated to be published by mid-December.

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Evaluating risk with loss ratios

By | Cobalt GP, Commentary, Loss Ratios, Private Equity, Venture Capital | No Comments

Let’s talk about risk. Everyone knows that private equity and venture capital managers are taking big risks each time they invest in a new deal, and a positive outcome is far from guaranteed. In the world of start-up investing, the Juiceros are far more common than the Facebooks. So how do managers track risk in their portfolio and the breakdown between the winners and losers? One way is with loss ratios. The realized loss ratio represents the percentage of fund capital in deals realized below cost, net of any recovered proceeds, over the total amount invested. The impairment ratio, sometimes called simply…

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Deal-level MOIC: straight-forward performance reporting and actionable insights

By | Cobalt GP, Commentary, MOIC, Portfolio Company Analysis, Private Markets Industry Insights | No Comments

Back to basics Multiple on invested capital, or MOIC, is one of the most fundamental performance measurements for private fund investing. Sometimes called TVPI (total value to paid-in) or the investment multiple, MOIC is calculated by dividing the sum of a fund’s realized and unrealized value by the total dollar amount invested. But if you’re reading this blog, none of this should be news to you of course. While MOIC is ubiquitous in fund-level performance reporting, we believe that more can be done with the metric when it comes to deal-level portfolio analysis and reporting. This post will delve deeper…

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How to utilize operational metrics in private equity portfolio analysis and reporting

By | Cobalt GP, Commentary, Portfolio Company Analysis, Private Equity | No Comments

When looking at performance measurement in private fund management, IRR and MOIC are king. These metrics tell you definitively how well (or how poorly) a fund is performing from a cash value perspective. Yet IRR and MOIC often fail to provide any clarity on how the portfolio is performing from an operational point of view. When you add to this the fact that more and more clients are moving towards embracing double and triple bottom line investment guidelines, it is clear that IRR and MOIC alone are not meeting the reporting needs of clients. So how do fund managers determine…

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Three factors direct lending funds should be tracking on potential borrowers

By | Cobalt GP, Commentary, Direct Lending, Private Credit, Private Markets Industry Insights | No Comments

In the world of private credit, 2017 has been a banner year for direct lending funds. In a recent update, Preqin reported that, “Over the past four quarters, direct lending funds have secured $43bn via 70 funds, constituting a third of total private debt capital raised ($125bn) and nearly half of funds closed (152) in the period.” What makes these figures even more noteworthy is that private credit managers aren’t alone in driving the uptick. Many of these newly launched direct lending funds are coming from traditionally private equity focused GPs. PE firms have begun launching direct lending funds to…

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Three case study charts to set your VC fund pitch deck apart

By | Cobalt GP, Commentary, GP Fundraising, Investor Relations, Venture Capital | No Comments

A standard venture capital pitch deck is fairly predictable. A sleek cover page followed by boilerplate slides of high-level firm stats and headshots of the team, perhaps even a map overflowing with colorful logos of portfolio companies. Then comes a slide full of buzzwords describing the firm’s unique approach to investing, which ironically sounds just like everyone else’s. These presentations, while easy on the eye, are often heavy on style and light on substance. Firms generally will not drill down beyond fund level IRRs and TVPIs. At the portfolio company level, you’re lucky if you get anything more than commitment…

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