Forecasting 101: What is the Horizon Model?

July 13, 2021

We believe in putting the power into the hands of those making investment decisions and providing them the resources to do so. Planning your commitments and stress-testing your portfolio’s potential outcomes made simple.

Hamilton Lane’s Horizon Model is a proprietary forecasting tool to provide guidance in the allocation and construction of private markets portfolios. The Horizon Model utilizes a data-driven approach to project NAVs and forecast future cash flows for each fund in a portfolio based on the style, unfunded, age and NAV.

With even further advancements coming to Cobalt LP’s Horizon Model, forecasting can now be a headache of the past!

What’s Changed?

Hamilton Lane’s Private Markets Analytics Team monitors changes in cash flow patterns and performance metrics. We are constantly looking for ways to refine our technology and provide users with the most accurate and updated platform.

• Updated assumptions that better reflect recent market changes and revised economic overlays to better reflect downturn scenarios.
• Expanding Styles and Focuses: Growth Equity joins Buyout, Credit, Distressed, Fund of Funds, Real Assets, Natural Resources, Secondaries & Venture as our 9th defined style. Lucky number 9!
• Improved Commitment Planning: Using Hamilton Lane’s data, we are able to account for the fact that capital is distributed faster towards the end of a fund’s life. Our model has been adjusted to more accurately forecast distributed capital.

Cobalt LP Makes Forecasting & Commitment Planning Uncomplicated

Technology makes mundane and administratively intensive tasks easier. Whether it is sending an email from the beach or using Cobalt LP to forecast the future cash flows of a portfolio, the digitalization of our world is making our day to day more efficient and enjoyable. Spend less time in spreadsheets and more time making data driven decisions.

Looking to learn more? Find the detailed update notes here or contact us for further information!

Please note Hamilton Lane’s proprietary Horizon Model is based on historical private markets fund data and is based on sources that Hamilton Lane believes to be reliable, but the accuracy of such information cannot be guaranteed.  The Horizon Model is designed to demonstrate the potential behavior of private markets’ investments, but actual results may have material differences.