Neuron & FundProcess have partnered to develop a genuine Cash Flows Projection Model for Private Equity

August 4, 2022

Neuron and FundProcess have partnered to build a joint solution entitled “AMCOPE”. This module, integrated to the FundProcess platform, provides a powerful Cash Monitoring Tool specifically dedicated to Private Equity transactions.

This model has been developed by a team of specialists with outstanding academic and professional backgrounds in Quantitative Finance, Risk Management and Valuation.

The AMCOPE model is a genuine proprietary model used to calculate a series of cumulated cash flows (i.e., drawdowns and distributions). Using the FundProcess Macro Editor, the user can encode Custom Inputs* related to the Private Equity deals (e.g., committed amount, total deal duration and drawdown period as well as the expected multiple on committed amount). With this tool, you can design Custom Dashboards showing the expected cash flows evolution for an entire private equity transaction.

Combining Neuron’s knowledge of Quantitative Analysis and FundProcess’ Data Management and Coding Tools has resulted in a powerful Cash Monitoring Tool dedicated to Private Equity transactions. This solution offers the following benefits:

  • A clear identification of the parameters behind a successful Cash Flow Forecasting;
  • A very satisfactory error margin, at Portfolio Level, for Private Equity Funds composed of several Private Equity transactions, or at the level of a Management Company / AIFM, managing several Funds;
  • The ability to bypass IT and service providers to customize Cash Monitoring Tools.

*May be adjusted at any time to reflect the evolution of actual cash flows paid/received.

About Neuron and Alain Ruttiens

Founded in 2008, Neuron is an Advisory company providing services related to Financial Markets and Financial Products and is currently active in Luxembourg, Paris, and London. The company benefits from an exceptional Network of Academics and Practitioners acting in the Quantitative Finance field.

Among Neuron’s references:

  • World Bank (Washington): Consultant on Risk Management regulations for the UEMOA African countries
  • Carmignac Gestion (Paris & Luxembourg): Risk Management
  • Nomura Bank (Luxembourg): Pricing of complex Structured Products
  • Pure Capital (Luxembourg): Risk Management
  • Arendt & Medernach (Luxembourg): Consulting on Financial Instruments and Markets
  • Aviva (Luxembourg): Liquidity Risk Management
  • Jones Days (Paris): Technical support on litigations about “Toxic Credits” involving complex Structured Products
  • Advolis (Paris): Technical support on derivative products
  • Executive trainings on Derivatives, UCITS Risk Management, AIFMD, etc.:
    • PwC Academy (on derivatives and on AIFMD)
    • Caceis Bank
    • BIL
    • BPERE
    • RBC
    • Lemanik management company

Neuron’s sole founder, Alain Ruttiens, worked for Indosuez Bank, and then for KBC Bank, where he developed a strong expertise in Financial Markets and Derivatives. He also worked for CBC Bank as Head of the Financial Engineering Department.

He acts as an Independent Director for Pure Capital Fund SICAV (since 2015) and for the Foresight Group S.à r.l. (since 2020).

Since 1989, Alain Ruttiens has been an Affiliated Professor at ESCP Europe (Paris), where he teaches Mathematics and Stochastic Calculus in the Advanced Master in Finance program, and Funds Performances Measurement and Regulations in the International Wealth Management program. He has also taught (Master degrees) at Sciences-Po (Paris), at HEC (Paris), at Dauphine (Paris) and at the Sorbonne (Paris) and is currently teaching at the University of Caen (France), in Beirut (Lebanon) and in Vietnam.

He is also the author of several books and articles, among others:

  • Decision Making with Quantitative Financial Market Data – Applications, Precautions and Pitfalls, Springer, 2021, 61 p.
  • Futures, Swaps, Options – Les produits financiers dérivés, Edipro, Liège & Paris, 5th ed. : 2021, 435 p. (in French)
  • Co-author with Charles Muller : A practical guide to UCITS Funds and their risk management, Edipro, May 2013, 144 p.
  • Mathematics of Financial Markets, John Wiley & Sons, March 2013, 333 p.
  • Portfolio Risk Measures: The Time’s Arrow Matters, Journal of Computational Economics, online since August 2012, printed version : March 2013
  • Co-author with Adela Baho: Probability and Pertinence, Risk Management, eJournal, Vol.6, N° 128, Dec 15, 2014, and in International Journal of Business and Management Study, vol.2, issue 1, 2014. (Paper is about the VaR calculation).

For more information about Neuron, visit the website: www.neuron-advisory.lu.