Dynamo SoftwareInc,a market-leading provider of end-to-end cloud software solutions for the alternative investment management industry,recently announced a partnership with Northfield Information Services,Inc.Through this information technology collaboration, Dynamo will further augment its analytics and reporting by providing Limited Partners (LPs) with enhanced modeling and forecasting of cash flows and fair values, powered by Northfield.
The Dynamo-Northfield partnership responds to the growing demand for insight and transparency into investment performance which investors want readily available recently dynamic environment. The integration empowers Dynamo’s LP clients, including endowments, foundations, pensions, family offices, and fund of funds (FOF), to design allocation plans, assess potential cash flow shortfalls,and conduct stress/scenario testing with increased confidence.
The Northfield data integration,combined with Dynamo Data Automation (DDA), also equips LPs to accelerate smart business decisions and optimize investment operations.Dynamo’s clients will now have access to the industry’s most in depth risk reporting and modeling,and can confidently eliminate the manually-intensive process of investment data sourcing from manager portals and emails.
“Institutional investors require increasingly sophisticated analytics and forecasting tools to meet and maintain investment goals, particularly in turbulent markets,” said Dynamo’s CEO Hank Boughner. “We share that mindset.Dynamo’s proven platform has been embraced by LPs as business-critical for providing portfolio optimization and in-depth analytical modeling that accelerates the ROI behind essential private investment strategies. Now with Northfield, we are further empowering LPs with next-generation analytics, reporting, forecasting, and allocation planning.”
Dynamo identified Northfield’s leading-edge risk model,intricately linked with cash flow and Net Asset Value (NAV) forecasting methodology, as a seamless fit for the platform’s unified user experience. With the Northfield integration, Dynamo’s LP clients get an advanced approach to modeling private asset cash flows and fair value, dynamically updated and calibrated to the client’s data with an additional 3,000+ proprietary fund histories. Unlike other industry standards, such as Takahashi-Alexander, Northfield’s forecasting and probability ranges go beyond point estimates. Northfield’s approach is linked to other notable risk models for a more precise estimate of performance and risk. This provides a comprehensive data set that addresses fund, deal, and hybrid structures.
“We are thrilled to partner with Dynamo and power their new cash flow reporting engine,” said Emilian Belev, Head, Enterprise Risk Analytics at Northfield.“Dynamo has repeatedly shown its commitment to delivering world-class capabilities to the private investment industry while driving innovative approaches to improve manual,labor-intensive processes. It’s exciting for us to be part of their trusted partner ecosystem. This will help further broaden Northfield’s reach among LPs who are ready to maximize their investment impact with elevated analytics and reporting.”