Client

The client is a leading Australian infrastructure fund, which uses a range of technology to model asset valuations, drive investment decisions and optimise portfolio mix.

Brief

The brief was to develop an investment valuation model that was modular, scalable and capable of modelling any infrastructure company of global size and complexity.

The client was keen to harness Modano’s modular capability to develop an Excel-based forecast and valuation model suite that could:

• model any multi-currency, multi-asset investment opportunity;
• support a library of asset types, from ports to roads, airports to pipelines;
• forecast funding at either a portfolio or individual asset level;
• handle any combination of cost, equity and consolidation of company assets;
• allow for any changes in asset ownership, both by percentage and accounting type;
• value the sum of underlying assets, as well as the consolidated company; and
• integrate with upstream data (Capital IQ) and a downstream asset database.

Solution

The build took three months to complete and resulted in a model based around the following main modules:

• Macro-Economic – linked to a central database of macro-economic assumptions.
• Asset – individual asset with own three-way financials, funding and valuation metrics.
• Financial – integrated three-ways financials showing hold co. and consolidation.
• Reporting – valuation reports, investment decision papers and summary dashboards.

Modano Benefits

In terms of scalability and automation, the Modano software allowed the analyst group to:

• build out a wide range of sector-specific asset modules – toll roads, airports, ports, etc.;
• share each other’s modelling content on an automated basis;
• develop highly consistent models, with corporate theming by default; and
• create even the most structurally complex multi-asset company in minutes rather than days.