Private Debt Real Estate | Mercatus Case Study

November 9, 2020

Critical Business Issue:

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

 

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