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Asset Lenz requires certain Excel model inputs to work as intended. The document entitled “Creating your First Deal Model” covers the topic of creating a deal model and mapping Asset Lenz keys to the deal model logic. Below, you find examples of such models with no real data and simple financial models, and an example of a calibrated Excel input for the Macro-Industry Model.

To run any deal model, a single Macro-Industry model needs to be selected so that its outputs can be generated and referred to for all deals and portfolios. This is necessary to have the economic risks and variability in industry growth rates to affect the pricing and projections distributions of deals and portfolios. In other words, Asset Lenz Deal Models are dependent on a properly calibrated Macro-Industry Model.

Macro-Industry Model

For variability and risk modelling, the macro-industry model is essential to generator random numbers. Currently there is a single way to build a macro-industry model, that is with a set of input parameters for the 3-regime macro-industry economy. This is meant to simplify the parameterization but only having a couple hundred inputs to define and calibrate. Yet it is the necessary minimum to be able to generate a macro-industry model that has the economic/financial econometrics stylized facts to model deal and portfolio level risks and conditional returns.

Parametric Markov Chain Monte Carlo

This is the only functional model in the Macro-Industry model section. Below is an attached template of an input that can be uploaded to Asset Lenz to run this type of model in the Macro-Industry Model tab.

macro_industry_inputs_vF.xlsx

<aside> 🏗️

Coming soon to Asset Lenz Macro-Industry Modelling

• [ ] V1 will allow for the ingestion of historical simulations to either use them as is, or as an input to estimate and rerun the parametric MCMC to generate new simulations. The Historical Markov chain Monte Carlo and the Historical Simulations methods will soon be added to the platform, more to come.
• [ ] For more on these stylized facts, the Asset Lenz team is writing white papers to showcase these and in the process validate the outputs of the macro-industry model. </aside>

Deal Model

In Asset Lenz V1, there are several model deal types that are supported, these are limited to: “Infrastructure”, “Private Equity”, “Real Estate” and “Generic Private Market”. Below, are examples of templates for each of these deal types with downloadable Excel files that are editable and can be uploaded into the Asset Lenz platform as a Deal Model.

<aside> 🏗️

Coming soon to Asset Lenz Deal Types

• [ ] V1 Deal Modelling will soon included deal types like: Private Credit, LP Stakes and GP Stakes.
• [ ] For V2, Asset Lenz will include new deal types like: Public Equity, Fixed Income, Venture Capital and others. </aside>

Infrastructure

Attached below is an example of an Infrastructure deal type for a business that is a Ports business based out of the UK.

Infrastructure_TemplateModel.xlsx

Private Equity

Attached below is a template of deal called BigBigPlatform that is of the Private Equity type. This deal can be uploaded as is and run as a Private Equity deal without any complications.