An Alterative to Option Pricing

EXPECTED VALUE OF PROMOTE

For those who want to dig deeper into the mechanics behind the dashboard, the following Excel workbooks reproduce the same correlated-return simulation in a spreadsheet format. Each file can be downloaded and run locally, allowing you to adjust assumptions and generate new scenarios to explore how the results change.

JV examples

This workbook illustrates the simulation framework behind the dashboard, using correlated normal draws to model venture outcomes. It shows how assumptions about correlation, return, and promote structure affect expected promote and the distribution of returns across simulated scenarios. Simulation of Correlated Normal Variables_JV Examples

Capital stack examples

This workbook applies the same simulation approach to a capital stack framework, where correlated returns are used to estimate expected returns across different layers of the capital structure. It allows users to examine how changes in assumptions affect the outcomes of the overall stack in a repeatable, spreadsheet-based setting. Simulation of Correlated Normal Variables_Capital Stack Examples