A fixed income-derived framework to decode private market investments — enabling transparent pricing, risk transfer, and active portfolio management without moving the underlying assets. LPs shouldn't be reactive to liquidity events. XTAL gives you the forward curve.
LPs today manage multi-asset portfolios with sophisticated risk frameworks — yet private fund allocations remain a blind spot: opaque, illiquid, and measured with tools designed for a different era.
The standard performance metric assumes interim distributions are reinvested at the IRR itself — a circular, unrealistic assumption that prevents meaningful cross-asset comparison.
IRR and PME-based indices cannot be added or linked across funds and periods without distortion. There is no structurally valid index methodology for private capital.
Without a forward yield curve for private markets, LPs react to distributions and capital calls rather than plan. Timing and reinvestment risk compound silently.
Liquidity in private markets is not a gate to wait at — it is a horizon to navigate toward. XTAL gives LPs the forward curve they need to plan proactively, allocate with precision, and transfer risk on their own terms.
XTAL applies Macaulay duration to private fund contributions, distributions, and NAVs — producing a forward yield extracted from risk-free equivalent bullet representations of each fund's cash flows. The result is a term structure of expected returns: a yield curve for private markets.
Like fixed income, DARC yields can be transferred along the term structure, aggregated consistently in present-value space, and replicated in investable instruments — recorded daily. No reinvestment assumption. No circularity.
DARC operates within the arbitrage-free term structure theory of Heath, Jarrow and Morton. It uses discount-based Macaulay duration to create equivalent bullet representations of each fund's scattered cash flows — one for contributions, one for distributions — and extracts the forward yield over the interval between them.
The framework is explicitly non-root in formulation: no IRR-style equation to solve, no reinvestment assumption, no circularity. It is modular, extensible, and structurally consistent with multi-asset performance frameworks.
DARC discounts using an exogenous risk-free curve — not its own rate. This decouples performance measurement from reinvestment assumptions entirely and enables arbitrage-free time transfer along the term structure.
Unlike IRR or PME, DARC is aggregation-consistent in present-value space. The aggregated DARC is derived from pooled bullets, not from averaging fund rates — satisfying the structural requirement for index construction.
The duration framework allows statistical estimation of expected NAVs and probabilistic adjustment of reported figures — enabling daily forward-looking risk monitoring without discarding accounting data.
From analytics and benchmarking to value navigation and trading — all built on DARC, giving LPs a consistent, connected view across the full private allocation lifecycle.
Real-time DARC analytics for performance measurement and risk monitoring across private market allocations.
Fund navigation tool for modelling and visualising the DARC term structure — from forward yield to horizon reconciliation.
Rules-based, duration-adjusted private market indices. PV-aggregation-consistent, investable, and recorded daily.
Private fund value navigation for institutional LPs. HELM delivers a forward view of the full private allocation — modelling expected cash flows, duration exposure, and liquidity horizons across the portfolio. Move from reactive to proactive liquidity planning.
A trading exchange for physically-backed private market derivatives — enabling risk transfer and rebalancing without moving the underlying assets.
Establishes three foundational properties of DARC: arbitrage-free yield transfer along the term structure; notional preservation via undrawn commitment as a synthetic risk-free position; and aggregation-consistency in present-value space — the structural requirement for private capital index construction.
XTAL works with institutional LPs, sell-side and buy-side firms, and financial intermediaries globally. Offices in London and Milan.
XTAL Strategies Srl is registered in the Innovative SMEs section of the Italian Business Register. XTAL Markets Limited is incorporated in England and Wales.
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