In this episode of RPM, Qi Liu from our data, science and engineering team discusses one of our newest tools – the daily valuation engine (DVE). Typically, private market investors must wait anywhere from two to four months after quarter end to see how the value of their portfolios has changed; DVE, as the name implies, allows them to make this estimate well before general partners report. Among other things, we discuss:
- How DVE’s accuracy compares with alternative approaches (3:40);
- The mathematical principles (8:06) and key data inputs (12:14) that the model relies on; and
- Some of the ways in which investors might use DVE, from annual reporting to allocation planning (16:57)
