MODEL OVERVIEW
 
A hedge fund is a type of investment fund that pools capital from accredited individuals or institutional investors and employs various strategies, including long/short equity, market neutral, arbitrage, global macro, and event-driven strategies, to earn active returns for its investors.
 
Highly versatile and user-friendly Excel model for the preparation a of a hedge fund three statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection with a monthly timeline of up to 5 years. The model includes calculations for management fees and performance fees including any impacts from hurdle rates and high-water marks.
 
The model is highly flexible enabling the user to model up to 10 different funds generating investment return by applying different investment strategies. It also enables the user to model other income, direct costs, staff costs, marketing costs, operating expenses, fixed assets, tax, equity movements and borrowings.
 
KEY OUTPUTS
 
Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) presented on a monthly basis across 5 years and summarised on an annual basis.
Break-even analysis
Dashboard with:
Summarised projected Income Statement and Balance Sheet;
Compounded Annual Growth rate (CAGR) for each summarised income statement and Balance Sheet line item;
List of key ratios including average investment return, average profit margins, average return on assets and equity and average debt to equity ratio;
Bar charts summarising income statement and Balance Sheet projections;
Charts presenting total assets under management, total fee income, total return by fund and portfolio composition.
 
KEY INPUTS
 
Setup Inputs:
Name of business;
Currency;
First projection year and month;
Naming for funds, investment strategies / asset classes, other income, direct costs, staff costs, marketing costs, other expenses, financial investments, fixed assets and borrowings.
 
Actuals Inputs:
Opening balance sheet (for existing businesses);
Income Statement actuals (for trend analysis);
 
Projection Inputs:
Fee revenue inputs including:
Investor Capital Additions / (Reductions)
Average investment allocations per fund
Average return by asset class / investment strategy
Annual management fee percentages
Performance fee percentages, hurdle rates,
Entry/exit fee percentages
Other income and cost inputs including
Direct Costs;
Other Income;
Staff costs;
Marketing costs,
Other operating costs;
Sales tax and corporate tax inputs including rate and payment periods;
Dividend inputs including amount or percentage of retained earnings and frequency;
Fixed Assets including addition amounts and useful life;
Borrowings including addition/redemption amounts and interest rate;
Share Capital additions.
 
MODEL STRUCTURE
 
The model comprises of 9 tabs split into input ('i_'), calculation ('c_'), output ('o_’) and system tabs. The tabs to be populated by the user are the input tabs ('i_Setup', ‘i_Actuals’ and 'i_Assumptions'). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs which are presented in 'o_Fin Stats', ‘o_Dashboard’ and ‘o_DCF’.
 
KEY FEATURES
 
The model follows best practice financial modelling guidelines and includes instructions, checks and input validations;
The model contains a dynamic timeline that allows for a mix of actual and forecast periods across a 5-year timeline allowing projections to be rolled forward from month to month;
The model is not password protected and can be modified as required following download;
The model includes an 5-year timeline split on a monthly basis and summarised on an annual basis; 
The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
Funds – 10 funds
Asset classes – 10 asset class categories
Direct costs – 5 categories
Other income – 5 categories
Staff costs – 8 categories;
Marketing costs – 5 facilities
Other expenses – 15 categories;
Fixed Assets – 5 categories;
Borrowings – 3 facilities;
Apart from projecting revenue and costs the model includes the possibility to other income, fixed assets, borrowings, corporate tax and equity additions/distributions;
Fund details, currency, starting projection period are fully customisable;
Revenue, cost, fixed asset and borrowing category descriptions are fully customisable;
The model includes instructions, checks and input validations to help ensure input fields are populated accurately; 
The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors. 
 
SUPPORT / MODIFICATIONS
 
We are keen to ensure our customers are satisfied and find the models useful for their financial projection needs. Our models are developed with the user in mind and include instructions, line-item explanations, checks and input validations to ensure they are as user-friendly and easy to use as possible without requiring extensive knowledge of Microsoft Excel, finance or accounting. If any questions do arise, we are more than happy to assist. We are also happy to support with any be-spoke modifications you may require to the models to better suit your business needs. To get in touch, please send us a message through the website or contact us on: hello@useprojectify.com
 
We are also always keen to receive feedback so please do let us know what you think of our models by sending us a message or submitting a review.