Endowments & Foundations
With its ability to model heavily-illiquid portfolios and to process complex multidimensional uncertainty, RiskKey® can greatly support the thought process and decision objectivity of:
  • CIO and investment officers
  • Risk and allocation officers
  • Manager research teams

For endowments and foundations, R&D covers a broad range of areas, the most common area being pricing risk in extremely illiquid or complex situations.

Examples of commissioned projects and studies relevant for endowments and foundations:
  • Modeling and pricing risk for illiquid (or extremely illiquid) holdings
  • Modeling and pricing features in deals
  • Modeling and pricing complex real options in assets and liabilities
  • Minimum EBITDA growth required to compensate USD investor for taking risks in certain countries (related to co-investments and private equity direct investments)
  • Price of FX risk in foreign countries, including countries with no functional markets
Examples of consulting services for endowments and foundations:
  • AI + utility-based asset allocation optimization that accounts simultaneously for investment risk, liquidity risk, principal erosion risk and a spending pattern aligned with the organization’s mission
  • AI + utility-based simultaneous optimization of both portfolio and the spending/granting dynamic that is aligned with organization’s mission (e.g. maximize spending in recessions). The optimization accounts simultaneously for investment, liquidity and principal erosion risks.
  • AI + utility-based optimization of portfolio implementation
  • Maximize the forward-looking magnitude and duration of outperformance versus benchmarks and peers
  • Other total portfolio risk management functions: convexity management, multi-criterial leverage optimization, optimal investment sizing
  • Determine the optimal range (size and asymmetry) for each asset class in asset allocation
  • Tactical allocation; optimal positioning in allocation ranges
  • Optimal overlay design: FX, convexity hedging, liquidity risk mitigation, leverage, portable alpha
  • Pacing optimization for private investments
  • Probabilistic macro-dependent models for calls and distributions related to illiquid asset classes
  • Short-term liquidity optimization (e.g., to support margin calls from overlays, leverage, etc.)
  • Advanced liquidity stress testing
  • Nonlinear modeling of underlying managers. This is particularly powerful in the case of hard-to-model portfolios, such as diversifying, opportunistic, PE, or VC.
  • Nonlinear modeling of internally-managed sub portfolios
  • Various applications of modeling to manager vetting including hidden risk discovery, convexity assessment and risk pricing
  • Optimal liquidity sourcing and deployment; real-time quantitative support for rebalancing, entries and exits (also available on a self-service basis)
  • Optimization of the liquid portfolio serving a private investment (sub)portfolio
  • Training and support for managing the total portfolio directly in the integrated asset-liquidity-spending space
What is the difference between Aiperion consultancy and R&D?
  • In consultancy, we are generally able to apply our already developed conceptual frameworks and solutions to solve clients’ problems
  • In R&D (projects and studies), we need to develop and apply new conceptual frameworks or solutions to solve clients’ problems
How is Aiperion supporting endowments and foundations?
  • We offer discounts to organizations focused on supporting women and minority owned businesses
  • We are able to co-fund research and modeling work related to diversity and economic equality
  • Internal funding option for small endowments and foundations: if you have a project which is impactful for your organization and beyond but are budget constrained, talk to us; we will consider it for internal funding
RiskKey only
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