Solid reporting of the risks in alternative asset investments and their underlying risk drivers is the foundation of every thorough risk assessment. Modern regulatory requirements dictate an accurate understanding of one’s risk position for nearly all institutional investors.

Competitive edge
through Reporting

One of the biggest challenges when investing in alternative assets is the risk of asymmetric information. This term describes the situation when two contract parties do not have the same information at contract signing. This is almost always the case with alternative assets. The previous asset owner, or in cases of credit investment, the originating bank is typically aware of all the relevant exposure details. Many factors that drive the asset’s value are not recorded in contracts or the investment memorandum. Additionally, changed circumstances are not necessarily discernible in the corresponding documentation. The previous owner or the originating bank are simply much closer to the asset than the secondary market investor. There is a risk that this information edge is exploited.

At the same time, tightened regulatory requirements, due to Solvency II / ORSA, CRA III or an updated investment directive by the management of an investor, require a more detailed understanding of the company’s risk position. Relying on external ratings alone is no longer a feasible approach. Risk reporting is thus becoming increasingly more important. For small and medium sized businesses that do not have the capabilities to form their own alternative asset investment team, it can be beneficial to hire a service provider to oversee their reporting of risks. Based on the prepared report, the investor’s management team can form a qualified opinion on the risk drivers.

We create transparency

In the context of portfolio management, Caplantic divides the standard reporting into five segments. Each segment plays an important role in conveying a comprehensive understanding of current and future investment performance to the customer. Caplantic uses a variety of complex data sets and focuses on easily interpretable realisations of customer requirements. This approach allows investors to thoroughly monitor reporting outputs and enables Caplantic to react swiftly to economic developments and updated regulatory requirements.

What our experts say

Caplantic manages a large multi-asset portfolio for us. In addition to reporting and Workout monitoring, their services include simulations of all relevant risks with the help of multivariate portfolio models. In our opinion, Caplantic does an excellent job. They are simply a great team.

Richard Robb
CEO Christofferson , Robb and Company & Professor of Professional Practice at Columbia University's School of International & Public Affairs

Contact Financial Solutions Reporting

Lennart Metke

+49 (0) 511 9999 3106

Caplantic`s Reporting building blocks
  • Descriptive statistics
  • Analysis of top exposures
  • Stochastic analysis
  • Risk control system
  • Workout monitoring