Best Practices on Performance Cases

Performance cases offer flexibility in how you want to model an investment’s forecast. We recommend picking one of the following 3 approaches to manage performance cases for an investment.

Approach 1: Single case with graduation rates

Level of Effort: Low

Build only one case and the performance risk is captured in the graduation rates of the forecasted rounds.

Approach 2: Multiple cases with 100% graduation rates

Level of Effort: Low

Build multiple cases and the performance risk of the investment is captured in the case probabilities of each case.

Approach 3: Multiple cases with custom graduation rates

Level of Effort: High

Build multiple performance cases and the performance risk is captured in both the case probabilities and the graduation rates within each case. This gives you the greatest control - for e.g., you may model an Upside case that has a higher likelihood of graduations than the Base case.