The FEV Technology Platform
100% Objective Measurement
FUNDAMENTAL ECONOMIC VALUE
The FEV Platform objectively measures private asset performance, volatility, and risk.
It uniquely meets the private capital markets’ urgent need for a scaleable, accurate, empirical unit of measure.
Performance analysis in private equity is characterized by imprecise and inescapably biased methods like IRR, vintage year analysis, and peer benchmarks. Notably absent are empirical, repeatable interim measures of growth, attribution, exposures, and opportunities. Cash flow based analyses, whether at the fund or asset level, do not provide these insights – insights that are necessary for competitive advantage and fiduciary accountability.
Groundbreaking Technologies, Revolutionary Capabilities
The FEV Model describes a firm’s economic footprint, or size, using fundamental inputs from the firm’s financial statements and industry. Interweaving techniques and methods from the scientific disciplines of allometry and biology, the FEV Model maps the quantifiable elements of size and growth, representing relationships with continuous mathematical surfaces that respond to new data. The financial behavior of a firm depends on its size and where it is on the growth curve.
What emerges from this view is exciting – a mathematical mapping of firm size and growth, which is not dependent on current state of the market and macro factors.
The FEV measure is not cash flow or IRR based. FEV is not a multiple or weighted combination of existing valuation methods. FEV is a new approach that harnesses the latest advances in statistical modeling for the benefit of the private equity industry.
FEV is a revolution in measurement.
Simultaneous Public – Private Measurement
on a Standardized Basis
An exciting feature of the FEV Model is its ability to measure public and private companies simultaneously
on a standardized basis.
For investment officers, this means that fund performance can now be measured contemporaneously against public benchmarks. The benchmarks are constructed by the FEV Model for optimal specificity and robustness, and satisfy all the components of a valid benchmark – including investability and transparency.
Public – private equivalence is transformative for manager screening, benchmarking, performance attribution, and predictive applications.
FEV to firm value
from already existing data
- Super Fast
in less than 90 seconds
A Complete Model
From research led by Dr. Sidney Porter (PhD Mathematics, Yale University) the FEV Model is new, accurate, and able to solve some of the most entrenched, limiting, and expensive problems facing the private equity industry.
The FEV Model is a complete measurement solution, covering valuation, volatility, and risk. Output analytics are finally in a unit that is the same as publicly traded asset classes. Finally the PE industry has a true standard backed by a complete mathematical model.