Beckway Insights: 13-Week Cash Flow Forecasting
The Financial Times recently reported on the rise of net asset value (NAV) financing in the private equity (PE) space. From an investing perspective, it is a sign that PE groups are adapting to the current interest rate environment, forcing them to get creative with portfolio and limited partnership management. From an operating perspective, however, it demonstrates cash management has become trickier as the COVID pandemic recedes further into the rear-view mirror. Coupled with macro situation in which SOFR interest rates have risen 5% in just 4 months, portfolio CFO’s have never needed a better understanding of both their cash inflows and outflows.
Now is the time for finance professionals in the PE space to make sure their 13-week cash forecasting is as dynamic as possible, and that they are using the appropriate tools to monitor major working capital inputs such as A/R, A/P, and inventory.
For more information on how Beckway can help with your cash management needs, contact our Finance and Analytics Practice Lead, Todd Brents, at tbrents@beckway.com.