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Revenue Durability and New Revenue Creation Capacity measures are combined to form a company’s Growth Predictor Score. From this score the likely future revenue and growth rate over the next 24 months can be predicted. See illustration below.
Predict Portfolio Growth
The illustration below shows the Alpha Advantage of a typical portfolio relative to industry average, market average, and top-quartile benchmarks,
Predicting Growth Thresholds
The Growth Predictor Index creates a new cross-sector benchmark for measuring and predicting company and portfolio growth trajectories. Organisations are classified according to their predictive growth thresholds—
Game-Changer (8.5)
Innovator (8)
Growth Accelerator (7.5)
Growth Tipping Point (6.5)
Each threshold represents a measurable step-change in a company’s ability to consistently convert opportunities into revenue growth. Predicted growth rates are assigned to the Index and its corresponding growth threshold.
This provides financial institutions with an additional framework for value creation assessment and exit timing decisions.
Approach
The Alpha Initiative applies predictive intelligence across three interconnected layers:
Capital Provider Layer: Improve selection, portfolio underwriting, risk management, and capital allocation through forward-looking growth and performance signals.
Enterprise Layer: Improve growth, innovation, execution, and revenue resilience through insights into revenue durability, demand trends, and monetisation capability.
Customer Layer: Capture behavioural and market signals from end customers to identify changing needs, emerging opportunities, and future growth potential.
Background
Alpha Initiative Metrics were developed from observing and measuring high growth in multi-sector enterprises from three decades of advisory work. These observed patterns have been formalised into proprietary predictive models. Growth rate predictions align with realised growth rates achieved by advisory clients with ~90% accuracy.
The result is better investment decisions, stronger lending outcomes, improved transaction execution, and more effective value creation.
View the Alpha Programme and timetable here.
View detailed steps to achieve your Alpha Advantage below