Construction Methodology

The following summary illustrates the Tactyc forecasting logic. Please reach out to us at [e-mail] if you would like further detail.

Portfolio Construction

The Tactyc modeling methodology is a step-based process based on the parameters set forth in the Construction Wizard.

Its important to understand that Tactyc does not forecast an investment line by line (that only happens for actual investments you’ve added to the portfolio). Instead, the model calculates the "average" cash flows for each your Allocations

1. Determine Investable Capital

Investable Capital is determined by netting fees and expenses from the committed capital. Any forecasted proceeds from exit recycling is also included in this calculation and increases investable capital.

2. Create Allocations

Investable Capital is then segmented into different allocations (such as Seed Investments or Series A Investments). These allocations are further categorized by Initial and Follow On capital available in each allocation

3. Projecting Initial Investments

All initial investments are projected on a monthly straight-line basis by the cadence defined for each allocation.

4. Projecting Follow-On Investments

The follow-on check sizes defined for each allocation are weighted by the current round's graduation rates to develop a probabilistic level of follow-on investments.

5. Projecting Exits and Failures

The exit values defined for each round are weighted by exit rates rates at each round to develop a probabilistic level of realized exit proceeds. All investments that do not graduate or exit are assumed to fail at a 0.0x multiple of their initial investment.

6. Computing Return Metrics

Exit proceeds are then computed against the fund's waterfall to determine proceeds to LPs and GP's. These cash flows are then used to determine IRR, return multiples, TVPI and other return metrics.