CEPRES partners with Qontigo

CEPRES has partnered with risk analytics and index solutions provider Qontigo, to develop risk modelling solutions for private market assets.

Qontigo’s cloud-based enterprise risk management system, Axioma Risk, measures sensitivities, assesses risk characteristics and stress tests at the portfolio, factor, classification, asset level or any other custom dimension, usually across liquid markets.

Through Qontigo’s Axioma factor risk models and CEPRES’ private fund cash flow data, asset managers and owners will receive insights across public and private market assets for risk analysis, portfolio construction and asset allocation. Exposures of private returns to public equity market risk factors such as size and value are then estimated to create a unified risk model that covers private and public assets.

Axioma North America buyout factor risk model (NA buyout model) is currently available for testing with select clients. A broader suite of models is planned for later this year.

“Risk modelling for private assets is difficult due to lack of regular, standardised reporting and independent market valuation,” commented Chris Sturhahn, chief product officer for analytics at Qontigo. “CEPRES is the gold standard of private equity data and has over 20 years of experience obtaining verified private fund cash flow, valuation and investment data directly from fund managers. This partnership enables us to expand our coverage in Axioma Risk so clients can view their portfolio risk for private and public market assets on a unified platform.”