GPE - Services for  Hedge Fund Administrators & Middle Offices  September 23, 2009 Globalprivatequity.com, Inc. Independen...
GPE Overview – Who We Are <ul><li>‘ GPE’ (Globalprivatequity.com, Inc. )  is a financial data services and technology comp...
What We Offer  <ul><li>Level 2 Pricing   for All Major Exempt or Unlisted Asset groups </li></ul><ul><ul><li>Single propri...
HFA Data Partner Needs <ul><li>Automated Data sources :  </li></ul><ul><ul><li>Level 2 valuations of client assets </li></...
GPE Distribution Strategy: Partnering with HFA & Client Users <ul><li>Strategy:   Partnering with current data users of Le...
Value Proposition  Globalprivatequity.com, Inc. All Rights Reserved 2006-2009 <ul><li>GPE’s software based data and transp...
Value Proposition (2) Globalprivatequity.com, Inc. All Rights Reserved 2006-2009 <ul><li>Target user audience seeks indepe...
What’s Available Today <ul><ul><li>i FVS® Level 2 data via subscription monthly or weekly for the following categories: </...
Phasing of Product Delivery & Supporting Architecture Phase 1 (3 to 6 mos.) Phase 2 (10 to 12 mos.)  Phase 3 (14 to 18 mos...
Competition <ul><li>The largest financial data vendors today   cannot offer the highest quality and integrity Level 2 valu...
GPE’s  Intellectual Property Assets <ul><li>US Patent Granted for: </li></ul><ul><ul><ul><ul><li>Integrated Trading Inform...
Components Delivering Fair Value Data Globalprivatequity.com, Inc. All Rights Reserved 2006-2009 Fair Value Data  Producti...
Fair Value Model: Key Inputs Globalprivatequity.com, Inc. All Rights Reserved 2006-2009 1. Unbundle Credit or Asset  Group...
Level 1 Price Aggregation IOI w/Price Discovery via AssetAccess™  <ul><ul><li>‘Dark pool’ bid-offer discovery only (no tra...
Automated Work Flow Controls Through FBIS™ Globalprivatequity.com, Inc. All Rights Reserved 2006-2009 <ul><li>Transaction ...
Delivering Automated Control Standards for Sound Liquidity & Risk Mgt.  via  the GPE Solution Suite Operational Principle ...
Delivering Automated Control Standards for Sound Liquidity & Risk Mgt. via the GPE Solution Suite New regulations will req...
GPE Management Team <ul><li>Douglas E. Miles, Founder, Chairman & CEO:  With more than 20 years of experience as a Wall St...
Globalprivatequity.com, Inc. All Rights Reserved 2006-2009 Independent Fair Valuation & Alternative Asset Web Transparency...
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Bpo Hfa 09 23 09 V1 2

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Bpo Hfa 09 23 09 V1 2

  1. 1. GPE - Services for Hedge Fund Administrators & Middle Offices September 23, 2009 Globalprivatequity.com, Inc. Independent Fair Value Services www.gpe-inc.com Transparency, Transaction & Price Discovery Services www.assetaccess.net
  2. 2. GPE Overview – Who We Are <ul><li>‘ GPE’ (Globalprivatequity.com, Inc. ) is a financial data services and technology company offering on-demand fair value pricing and data solutions for structured and illiquid fixed income assets to quality-concerned professional Level 2 data users. </li></ul><ul><ul><ul><li>GPE’s Independent Fair Value Services ( i FVS ® ) provide automated asset price valuation support for asset-backed securities (ABS), mortgage-backed securities (MBS), loans, corporate debt, distressed debt, and all structured credit products. </li></ul></ul></ul><ul><ul><ul><li>GPE uses modeling techniques and algorithms running through our core proprietary technology Financial Business Intelligent System ( FBIS™ ) server network to create evaluated pricing of illiquid assets. </li></ul></ul></ul><ul><ul><ul><li>GPE provides custom auction and multi-lateral counterparty liquidity and transparency solutions for illiquid and structured fixed income assets via our patented AssetAccess™ trading platform. </li></ul></ul></ul>Globalprivatequity.com, Inc. All Rights Reserved 2006-2009
  3. 3. What We Offer <ul><li>Level 2 Pricing for All Major Exempt or Unlisted Asset groups </li></ul><ul><ul><li>Single proprietary model to single Level 2 price delivered </li></ul></ul><ul><ul><li>Computed on the date reported </li></ul></ul><ul><li>Data Aggregation Services: Level 1 data exchange for faster referencing of traded prices marketwide, daily via investor data collaboration anonymously on WWW interface </li></ul><ul><li>Bid to Offer Discovery Tool Using ‘Dark pool’ Technology (more later) </li></ul><ul><li>Independent Reporting without Conflict of Interest — we own no assets, nor rate assets, nor make markets in any assets </li></ul>Globalprivatequity.com, Inc. All Rights Reserved 2006-2009
  4. 4. HFA Data Partner Needs <ul><li>Automated Data sources : </li></ul><ul><ul><li>Level 2 valuations of client assets </li></ul></ul><ul><ul><li>Level 1 sourcing via aggregating ‘data bank’ </li></ul></ul><ul><li>Reporting — input and output data </li></ul><ul><li>Compliance — firm-based as well as industry-based </li></ul><ul><li>Flexible Platform — easily integrated </li></ul><ul><li>Speed and Consistency — of analytic services </li></ul><ul><li>Archive and Retrieval — of all relevant data </li></ul>Globalprivatequity.com, Inc. All Rights Reserved 2006-2009
  5. 5. GPE Distribution Strategy: Partnering with HFA & Client Users <ul><li>Strategy: Partnering with current data users of Level 2 prices to deliver “ premium ”, non-matrixed i FVS® timely, independent and accurate valuations with supporting model transparency to customers </li></ul><ul><li>This means IP protected & licensed exempt securities data and independent valuations developed on a subscription basis for: </li></ul><ul><ul><li>Hedge Fund Administrators </li></ul></ul><ul><ul><li>Asset Managers </li></ul></ul><ul><ul><li>Pension Trustees </li></ul></ul><ul><ul><li>Custodians </li></ul></ul>
  6. 6. Value Proposition Globalprivatequity.com, Inc. All Rights Reserved 2006-2009 <ul><li>GPE’s software based data and transparency solution deliver post trade Level 2 data and in 12 to 14 months, on demand in transaction U/Is to meet needs of a broad array of global financial institutions and markets – led by unlisted & alternative products </li></ul><ul><ul><li>Synthetic price data alone does not support a fair value data franchise – tracking illiquid Level 1 & sister asset prices </li></ul></ul><ul><ul><li>Other services include – Level 1 aggregation, Bid-offer discovery, & full model support and documentation vis a vis CPA and regulator or investor constituency needs </li></ul></ul>
  7. 7. Value Proposition (2) Globalprivatequity.com, Inc. All Rights Reserved 2006-2009 <ul><li>Target user audience seeks independent, quality based and cost effective fair valuation of assets & liabilities as means of mitigating market risk, investor relations /compliance risk, and positively impacting overall business & profitability risks </li></ul><ul><li>Data conveniently delivered and accessed for all user environments whether exchange based or ‘upstairs’ office based and leveraging latest IT and distributed computing elements – all with automated archiving & on-demand retrieval as well as valuation model documentation to investor, regulator and CPA constituencies. </li></ul>
  8. 8. What’s Available Today <ul><ul><li>i FVS® Level 2 data via subscription monthly or weekly for the following categories: </li></ul></ul><ul><ul><ul><li>CLOs and distressed debt & loans </li></ul></ul></ul><ul><ul><ul><li>CMBS & RMBS </li></ul></ul></ul><ul><ul><ul><li>CRE MBS & RE whole loans </li></ul></ul></ul><ul><ul><li>Also, Level 2 data in; </li></ul></ul><ul><ul><ul><li>CDS & selected bespoke derivatives and options </li></ul></ul></ul><ul><ul><ul><li>Total return swaps & equity linked notes or notes with embedded </li></ul></ul></ul><ul><ul><ul><li>Performance features </li></ul></ul></ul><ul><ul><li>Delivered as individually calculated on our FBIS™ servers without extrapolation or shortcuts or estimating techniques known as ‘matrix pricing’ engaged in by all major Level 2 data sellers. </li></ul></ul>
  9. 9. Phasing of Product Delivery & Supporting Architecture Phase 1 (3 to 6 mos.) Phase 2 (10 to 12 mos.) Phase 3 (14 to 18 mos.) <ul><li>Automated Pricing Delivery </li></ul><ul><li>Single Asset - CLOs.- and Single API </li></ul><ul><li>Request Response Service </li></ul>Fully Automated Analytics -Add Analytics Engines -Add Push Service Complete Solution -Add Data Warehouse -Add GUI Interface
  10. 10. Competition <ul><li>The largest financial data vendors today cannot offer the highest quality and integrity Level 2 valuation solutions either on-demand or via audited workflow of algorithms & observable inputs. </li></ul><ul><ul><li>Failure of legacy data providers to invest in advanced systems, high throughput networks, & innovative work flow to meet the growing demand & legal needs of ’40 Act Invst. Mgrs. </li></ul></ul><ul><ul><li>Clinging to the status quo of pre FAS 157 & pre ’08 credit crisis practices of matrix derived evaluated pricing – which is really Level 3 and not Level 2 price data under FAS 157 </li></ul></ul>Globalprivatequity.com, Inc. All Rights Reserved 2006-2009
  11. 11. GPE’s Intellectual Property Assets <ul><li>US Patent Granted for: </li></ul><ul><ul><ul><ul><li>Integrated Trading Information Processing & Transmission System for Exempt Securities — Apr. 28, 2009 (US #7,526,444) </li></ul></ul></ul></ul><ul><li>Patents Pending for: </li></ul><ul><ul><ul><ul><li>USPTO Application No. 12/153,311 Integrated Trading & Information System for Collection and Dissemination of Valuation Data — May 2008 filed </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Unique High Throughput System for Financial Data Architecture Application – being filed in mid-2009 </li></ul></ul></ul></ul><ul><ul><li>Trademark granted for GPE Name & Logo </li></ul></ul><ul><ul><li>Trademark granted for i FVS ® Name & logo </li></ul></ul><ul><ul><li>Source code rights to $8MM Pedestal whole loan transaction platform secured in 2003 – only combined ABS/MBS & whole loan trading platform ever built </li></ul></ul>Globalprivatequity.com, Inc. All Rights Reserved 2006-2009
  12. 12. Components Delivering Fair Value Data Globalprivatequity.com, Inc. All Rights Reserved 2006-2009 Fair Value Data Production & Business Process Scalable to 100K + CUSIPS/day Model Engineers & Trading/Analyst Professionals With Independent Status FBIS™ Workflow via High Throughput Proprietary Software & Data I/O & Delivery Architecture Model Quality Assurance & Testing. With full model Documentation & Archives
  13. 13. Fair Value Model: Key Inputs Globalprivatequity.com, Inc. All Rights Reserved 2006-2009 1. Unbundle Credit or Asset Groups 2. Select Model Key Criteria – by industry or sector 3. Calculate Weighted Means – for each sector model 4. Extrapolate Liquidity Prem. – for each sector model <ul><li>Loans/Leases, Coupon, Term, FICO, Type, New/Used, Geography </li></ul><ul><li>Servicer/Seller –Captive or Independent </li></ul>5. Fair Value Synthesis <ul><li>Deal Structure or Whole Loan Pool Valuation </li></ul><ul><li>Vintage and Issuer Credit performance and pre-payments </li></ul><ul><li>Program Size </li></ul><ul><li>Apply GPE algorithms and models to create set of weighted sums or default coefficient driven measures in rank order. </li></ul><ul><li>Apply appropriate coefficient or beta catalyst of liquid to illiquid market differential for each sector & instrument type </li></ul><ul><li>Apply coefficient of period average of aggregated vs. disaggregated valuation spreads </li></ul><ul><li>Or a combination of the above </li></ul><ul><li>Impute final fair values for given period based on the designated model. </li></ul><ul><li>Apply Monte Carlo simulation for default risks </li></ul><ul><li>Archive FV records & associated models at GPE data center for easy retrieval by user, CPA or regulator. </li></ul>Track & Correlate Sector Spread Behavior <ul><li>Challenges: </li></ul><ul><li>Consistency of evaluation analysis </li></ul><ul><li>Sector documentation supporting initial valuation </li></ul><ul><li>Modeling on-going assessments of investment evaluation & liquidity premium </li></ul><ul><li>Understanding ongoing make-up of distressed loan or credit derivatives position or PE Fund position </li></ul>
  14. 14. Level 1 Price Aggregation IOI w/Price Discovery via AssetAccess™ <ul><ul><li>‘Dark pool’ bid-offer discovery only (no trading required) for market participants on anonymous basis – RFQ or IOI (indication of interest) query is then shared with corresponding user community </li></ul></ul><ul><ul><ul><li>On demand, 24 X 7 availability to full subscribers of Level 2 data </li></ul></ul></ul><ul><ul><ul><li>All dark pool participants are pre-qualified holders of the asset class within last X days or have purchased a Level 2 subscription for that class </li></ul></ul></ul>Globalprivatequity.com, Inc. All Rights Reserved 2006-2009
  15. 15. Automated Work Flow Controls Through FBIS™ Globalprivatequity.com, Inc. All Rights Reserved 2006-2009 <ul><li>Transaction Fraud Detection /User Security Profile updates accepted on a near real time basis via User Preference & Profile Settings in GPE modules </li></ul><ul><li>Discerning Level 2 data buyers are now seeking these premium characteristics in their data purchases: </li></ul><ul><ul><li>TIME STAMP & PROCESS checked labeling on their prices to prove all model algorithm steps were actually run on a given CUSIP </li></ul></ul><ul><ul><li>ON-LINE VALIDATION and DOCUMENTATION of model used and inputs deployed on exact date of Level 2 price creation </li></ul></ul><ul><ul><li>AVOIDANCE of short-cut processed data and matrix pricing techniques used by all legacy mass data providers. Every CUSIP or asset is run through its approved, contracted for model set – on a computing network. </li></ul></ul>
  16. 16. Delivering Automated Control Standards for Sound Liquidity & Risk Mgt. via the GPE Solution Suite Operational Principle Addressed Asset Access™ FBIS™ Establishment of robust liquidity risk mgt. framework X X Articulate liquidity risk tolerance X Develop strategy policy and practices (data support) X X Align risk taking with liquidity costs X Identify measure, monitor, & control cash flows X Manage liquidity across business lines, legal entities & currencies X
  17. 17. Delivering Automated Control Standards for Sound Liquidity & Risk Mgt. via the GPE Solution Suite New regulations will require banks to report continuous, transparent and integrated market and credit risk management metrics; HFA’s will need to provide new risk reporting data for their clients. Operational Principle Addressed AssetAccess™ FBIS™ Establish a diversified funding strategy X Management of intraday liquidity positions X Management of Collateral X X Conduct stress test & contingency funding plan n/a n/a Liquidity buffer X Reporting of liquidity position X
  18. 18. GPE Management Team <ul><li>Douglas E. Miles, Founder, Chairman & CEO: With more than 20 years of experience as a Wall Street investment banker, Mr. Miles has held senior positions at Merrill Lynch Capital Markets, Deutsche Morgan Grenfell, and Kleinwort Benson </li></ul><ul><li>Jake Ginder, Chief Data Officer: Mr. Ginder is an experienced entrepreneur with strong business development and operations management skills in technology, healthcare, and logistics. He oversees GPE’s proprietary software and intellectual property assets. </li></ul><ul><li>William Kister, Operations Director: Mr. Kister’s Wall Street operations career spans more than 25 years, specializing in fixed income derivative and structured financial products operations and client support at Citigroup, JPMorgan Chase, Merrill Lynch Capital Services and AIG Financial Products. </li></ul><ul><li>Plus a team of over seven veteran independent modeling engineers and analysts representing major hard to value asset classes and understanding the essentials to achieving high quality Level 2 data reporting and creation of market surfaces in relevant sectors </li></ul>Globalprivatequity.com, Inc. All Rights Reserved 2006-2009
  19. 19. Globalprivatequity.com, Inc. All Rights Reserved 2006-2009 Independent Fair Valuation & Alternative Asset Web Transparency & Data Services

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