Metric Point Capital leverages Cobalt GP to help clients fundraise effectively with better insights and more nimble analysis

Transcription

1 Metric Point Capital leverages Cobalt GP to help clients fundraise effectively with better insights and more nimble analysis Cobalt GP gives you: Enhanced ability to slice & dice data by getting out of Excel Reduced reliance on Excel power-users for analysis Out-of-the-box reports to support strategic decision-making Who is Metric Point? Founded by partners Brendan Edmonds, Alex Leykikh, and Jim Weidner, Metric Point Capital is a boutique advisory firm that assists private equity, real estate, and infrastructure fund managers raise capital. Its clients include Bernhard Capital, Capricorn Healthcare, Origami Capital, Clairvest Group, Enlightenment Capital, Iron Point Partners, and Catalyst Capital Group. To facilitate the fundraising efforts on behalf of its clients, Metric Point maintains close relationships with a wide range of LP investors including endowments, foundations, public pensions, insurance companies, and family offices, among others. As a conduit between the two sides of private equity investing, Metric Point works to connect GPs with LPs whose portfolio mandate aligns with the respective GPs investment strategy. In a market with a plethora of placement agent options to help GPs raise capital, Metric Point Note: For informational purposes only. This presentation may not be copied, repurposed, distributed, or in any way used to create derivative works without prior written consent from the author. CobaltGP.com

2 sets itself apart with comprehensive analytics that can highlight and support the strengths of its clients strategies and demonstrate differentiation in a very crowded marketplace. Metric Point is unique in that the team works with GP clients throughout the fund lifecycle providing insight and analysis to help the senior management better understand and assess the performance drivers or lack thereof. FUNDRAISING FUNDAMENTALS One of the core components of private markets fundraising is marketing a GP s performance in today s more sophisticated environment this goes far beyond simply reporting IRRs and MOICs. Peer fund benchmarking and public market equivalent (PME) analyses are now "need-to-haves" when marketing to LPs. Additionally, portfolio performance in specific deal years, sectors, or geographies can all be shared to highlight industry expertise and position the GP s skillset within the targeted LPs portfolio. Creating these analyses and developing a portfolio positioning strategy is a central part of the work Metric Point does for its GP clients. However, this highly analytical approach to fundraising is time-consuming. Prior to implementing Cobalt GP, the firm needed a pragmatic solution that would enable it to provide deep analysis and insights to GP clients at scale. EXCEL BOTTLENECKS Before moving to the Cobalt GP platform, Metric Point, like most firms in the private equity industry, relied primarily on Excel-based spreadsheet models for portfolio performance analysis. These spreadsheets were clunky and struggled to handle iterative analyses. The inefficiencies of the firm s models were compounded when the firm began to scale and work with more clients. Projects that required benchmarking against different indexes or peer groups became very time-consuming exercises. Some of the models were complex enough whereby transitioning them between projects If our Excel power-users aren t available, it can slow down our analysis process -Alex Leykikh, Partner

3 was extremely challenging. As a result, the Metric Point team members often found themselves building the same analysis from scratch for each new client or portfolio. Another issue with an Excel-centric approach to analysis was that much of the access, knowledge and expertise of the core models was siloed with Excel power-users, creating key-man risk around these individuals. The limited access and concentration of knowledge in a narrow part of the team made it difficult to share analysis across the team and slowed workflows. METRIC POINT ADOPTS COBALT Since adopting the Cobalt GP platform in 2017, the Metric Point team has been able to effectively streamline its workflow to better serve GP clients with deeper insights to support their fundraising efforts. With Cobalt s intuitive interface and powerful analytical capabilities, the team has been able to execute complex analyses faster than ever before. Quartiling by different metrics that once took hours to complete in Excel now takes minutes inside the Cobalt GP platform. With the click of a button the team can toggle between benchmark indexes and can drill down to assess how a GP s performance stacks up in various geographies or industry verticals when compared to peers. Analysis comparing j-curves of portfolios from different vintages was once a painstaking process; it is now as easy as uploading quarterly cash flows and NAVs. Cobalt s clean design, easy-to-use and decentralized web-based platform allows all team members across the Metric Point organization to access data and run analyses from anywhere. Excel power-users are no longer the "masters" of particular files. Advanced calculations such as PME (Public Market Equivalent) performance analysis can now be run by all professionals at the firm. Data and analytics are universally accessible across the firm and workflow bottlenecks around portfolio analysis have been eliminated. There are three core reasons why we selected Cobalt GP over other tools in the industry; first, it s very intuitive; second, when software is easy to use, it tends to have a strong adoption rate; and lastly, it s next gen - the graphs and charts are sharp and clean, and we don t waste time formatting in Excel. -Pjeter Dushku, Vice President

4 Cobalt GP in Focus Shorten the fundraise cycle The Cobalt GP platform provides GPs with tools and insight to help them fundraise effectively. With Cobalt Data, GPs can find and target the right LPs for their fund. Cobalt analytics give GPs the tools they need to tell the story of their strategy and competitive advantages. Out-of-the-box reports and customized data visualizations help them meet the reporting needs of prospective investors while also being flexible and adaptive to ad hoc due diligence requests. The result is a shorter fundraise with aligned LPs. This allows GPs to get back to investing faster and with fewer disruptions. Superior LP and competitor intelligence The Cobalt Data features robust historical GP performance, fund, and LP investment allocation details. To ensure data integrity, and objectivity, data is always sourced directly from invested LPs, and never from GPs. This transparency mitigates the selfreporting and survivorship bias of other data sources and leads to accurate analysis that LPs trust. Cobalt GP also offers exclusive access to Hamilton Lane s benchmarks, one of the most expansive, accurate, and timely in the industry. Every private equity firm can benefit from the Cobalt platform -Alex Leykikh, Partner COBALT DRIVES RESULTS With a more streamlined workflow enabled by Cobalt GP, Metric Point was able to do more for its clients and scale up its business by adding new clients. All with the same amount of manpower. In addition to leveraging Cobalt GP for its core work, Metric Point also began to take advantage of the out-of-the-box analytics and reports built into the platform. Using Cobalt s automatically generated head-to-head peer fund and peer LP comparison reports, Metric Point was able to offer clients views and insights of their data that they did not have the bandwidth or resources to create before moving to the platform.

5 About Metric Point Capital: Metric Point is a private equity advisory and placement agent boutique. The firm supports successful alternative investment managers across the spectrum to raise capital from leading institutional investors worldwide, including public and private pension funds, endowments, foundations, sovereign wealth funds, financial institutions, insurance companies, and family offices. Metric Point advises on all aspects of fundraising, including competitive positioning and market assessment, marketing materials and related documentation, and partnership terms. Clients have included leveraged buyout, energy, real estate, infrastructure, distressed securities, and mezzanine fund managers, among others. The types of mandates the team has been engaged in include blind pool fundraises, co-investment equity placements, secondary sales of limited partner stakes, and portfolio company reorganizations and recapitalizations. Metric Point currently has professionals located in the New York metro area, Chicago, and Los Angeles. CONTACT US sales@cobaltgp.com (617)