Our work with a Private Equity Investment firm from Denmark illustrates our ability to apply an evidence-based, custom-made strategic approach to reorient a private equity firm real estate portfolio on a path toward project diversification and further growth.
The client engaged Datanalytika to provide holistic portfolio risk reporting, following the selection of real estate assets in Crete that were intended to improve portfolio diversification. The investor wished to monitor the risk characteristics of the absolute return strategies in context of the broader portfolio, being skeptical that diversification cannot be effectively measured in isolation.
This research aims to understand in tangible terms the potential of real estate investments in Crete. It provides an overview of the concrete steps the equity firm is already taking to improve diversity, and a practical guide to what needs to happen in order to establish and accelerate its project portfolio in Crete, Greece. While this report is specific to asset management, many of the themes are equally relevant to other firms and financial services providers.
The equity firm considered to diversify its entire equity portfolio by expanding its real estate portfolio in Crete, Greece, so that he could gain higher risk-adjusted returns. However, before moving forward, the management board requested from Datanalytika some historic price data to evaluate returns, and compare the risk-adjusted returns of the diversified investment which also involves a real estate portfolio in Croatia and Italy.
A deep survey campaign conducted by Datanalytika, in order to ensure that the in-place strategy is correct and identify the ideal real estate assets in Crete, Greece. Then, a tailored risk report that evaluates total portfolio risk and how this risk is generated via the portfolio’s real estate assets in Crete, Greece has been produced by Datanalytika. Using this analysis, the client can assess the return of investment potential of real estate assets in context of the wider portfolio.
Next, an investment strategy was developed after a robust portfolio structure analysis to understand the client’s overall objectives and the expected role of real estate investments in the cross asset class context, including needs for high returns, liquidity, volatility and return expectations, and such.
By using Datanalytika analyses, which include both top-down and bottom-up models, Advanced Analytics and Big Data modelling tools, we have been able to develop and implement an actionable plan that improve their portfolio expected risk and assess the economic viability of real estate investments in Crete.