In this use case video, we take a look at how Mercatus was able to help a Private Debt Real Estate investor deploy more capital while managing downside risk and improving the foresight they have over their portfolio.
Problem:
- Limited visibility into status of investments, no clear book of loan portfolio
- Growing inefficiency of teams and process effecting timely decisions and scale
- Processing scenario analysis across portfolio necessary at high volume but unable to analyze quickly
- Each investment has multiple properties and loans, complicating the analysis to produce a forecast
Requirements:
- System of record for loan portfolio, including historical investments and potential investments
- Ability to connect bespoke loan valuation models to system, send actual accounting data into models
- Ability to run multiple ad hoc scenarios by investment, compare selected active scenario vs base case
- View impact of scenarios on fund gross / net IRR
- Real-time calculations of investment performance, fund performance, waterfall of returns by fund
Results:
- Reduced risk of information loss/inaccuracy from moving investment history away from Excel
- Portfolio scenario analysis for 40+ loans in < 1 hr vs 1 week
- Ability to manage loan portfolio analysis with 1 resource vs multiple analysts
