TECHNICAL DOCUMENTATION

Financial Modeling
Methodology

Mathematical specifications for our private fund forecasting engine.

Transparent methodology including deterministic projections, Monte Carlo simulations, carry waterfalls, and multi-currency modeling. Based on industry-standard approaches and calibrated to benchmark data.

Why We Publish Our Methodology

Most portfolio platforms treat their methodology as proprietary.

We publish ours. See exactly how we calculate projections, IRR, TVPI, and risk metrics.

1

Transparent Calculations

Whether managing $20M or $2B in private markets, you deserve to know exactly how we calculate projections, IRR, TVPI, and risk metrics. We show our work.

2

Industry-Standard Methods

Our calculations use established financial mathematics - same approaches used by institutional investors. We publish the methodology so you can verify it yourself.

3

See How It Works

We publish our methodology. See exactly how projections are calculated, how scenarios work, and how Monte Carlo simulations are run. No black box.

Technical Documentation

Validation & Testing

700+
Automated test cases across 87 test files
4.9%
Exit timing error vs. Cambridge Associates
0%
Accounting error (cashflows always balance)

Industry Benchmark Calibration

Exit models calibrated to Cambridge Associates and Preqin data:

PE Buyout
5.8y median exit
4.9% error vs benchmark
Growth Equity
6.2y median exit
Calibrated to Preqin
Early Venture
7.7y median exit
Calibrated to Preqin

Settlement Overlays

Cash doesn't arrive instantly—we model escrows and lockups:

Buyout
95% at close
5% trailing (18 months)
Venture
90% at close
10% trailing (24 months)
Credit
100% immediate
(No escrows)

Settlement overlays improve cash timing accuracy by 6-12 months for liquidity planning

For Technical Readers

These documents are comprehensive and rigorous. They include:

  • Mathematical proofs and derivations
  • Implementation algorithms (pseudocode)
  • Academic references and citations
  • Calibration tables and benchmark comparisons
  • Limitations and assumptions

If you're evaluating Nagare for your family office and want to understand the quantitative rigor behind our projections, start with the Financial Modeling System documentation.

The Only LP Platform with Fully Transparent Methodology

Competitors ask you to "trust us." We show you exactly how we calculate everything.

eFront
"Proprietary methodology"
Addepar
"Generic marketing materials"
Nagare
"Full transparency + expert validation"

Questions About Our Methodology?

Schedule a technical deep-dive with our team or start using Nagare free to see the projections in action.