Web Analytics


Financial Microscope - logo

"Financial Microscope is the only solution currently available on the market that provides direct predictions of a business's future financial health and overall performance - rather than reflecting on the past results."



Financial Microscope (FM) is an AI-powered platform designed to redefine investment decision-making with advanced predictive analytics and machine learning built into it. Product of two decades of rigorous research and training on millions of real-world business cases, FM’s algorithms detect very early indicators and patterns that traditional analysis methods miss. FM’s predictions go beyond conventional forecasting by predicting a company’s future financial trajectory based on the structure of a business, emerging situations and observed reactions of management. This unique capability enables investors to identify emerging risks and opportunities long before they are visible in standard assessments, giving them a decisive edge in managing their portfolios. The Financial Microscope (FM) is designed to equip Private Equity funds and consultancy firms with advanced predictive insights, enabling smarter investment decisions and proactive management of portfolio companies.




_____________________________

''Risk comes from not knowing
what we are doing''
- Warren Buffett
_____________________________

Performance Prediction

Sustainability of Performance Prediction (SUP) is more of a true prediction than a continuity-based forecast. At the core of FM’s predictive power is the SUP score, a genuinely forward-looking metric that goes far beyond the assumptions of continuity of the past results found as a base for traditional forecasting. Unlike retrospective benchmarks that largely reflect past performance trends, FM’s SUP score anticipates changes by assessing the unique characteristics, structure, and behaviours of each business, as well as emerging situations and their potential impacts. This approach means FM can identify challenges in companies that might otherwise appear financially stable or detect potential recoveries and growth in firms currently showing signs of underperformance, providing a truly predictive view of a business’s future.



Proactive Decision Making

With FM’s SUP score and other predictive metrics provided by the FM, investment funds can actively search for high-potential investments rather than waiting for opportunities to emerge. The platform enables fund managers to foresee shifts in financial health up to two years ahead, allowing early intervention where necessary and helping to optimise growth and returns across the portfolio.

Risk Mitigation

By capturing early risk signals, FM supports investment funds and consultancies in developing proactive risk management strategies. FM’s predictive models allow decision-makers to anticipate challenges and position their portfolios for resilience, avoiding reactionary measures and enhancing long-term value. With Financial Microscope, PE funds and consultancy firms gain an unparalleled predictive advantage, using cutting-edge AI technology to make forward-looking decisions and secure sustainable growth in an unpredictable market.



How does the FM work



The FM was designed to predict the future, not just analyse the past performance. Observing changes in KPIs alone does not equate to predicting what comes next. Simply tracking results to determine outcomes relies on lagging indicators. We would be interpreting events that have already occurred rather than predicting what is next, potentially even being misled in identifying the underlying causes. Furthermore, even when corrective actions are taken, it can be challenging to determine whether these actions will lead to meaningful improvements or not. Often, the root causes of underperformance are obscured, manifesting in unexpected areas. Detecting patterns in these hidden factors is exceptionally complex, and the logic behind them typically only becomes apparent in hindsight. This is where artificial intelligence (AI), particularly machine learning (ML), offers a distinct advantage. ML excels at uncovering subtle, early indicators and hidden patterns that would otherwise be impossible to detect. This ability to anticipate potential issues based on these faint signals is precisely what ML was designed for. However, a significant challenge with ML models is their lack of interpretability. They often cannot explain their reasoning in a simple, human-understandable format because their logic is built on vast, complex interrelationships that surpass our cognitive capacity. While some interpretable ML techniques do exist, these tend to compromise on the quality and accuracy of their results, which is why they have largely fallen out of use.

How FM Fits In? - The Financial Microscope was purpose-built to address these challenges. By leveraging advanced AI and machine learning algorithms, FM automatically identifies hidden patterns and early warning signals in financial data, providing predictions about future outcomes that are far more accurate and proactive than traditional methods. Importantly, FM bridges the gap between ML's complexity and practical usability by offering intuitive visual representations and insights tailored for decision-makers.
While the system’s internal logic may be highly complex, FM generates explanations by distilling these patterns into actionable insights. It uses techniques such as KPI sensitivity analysis, traffic-light visuals, and predictive modelling outputs to communicate risks, opportunities, and potential strategies in a user-friendly format. This ensures that businesses not only gain foresight into what lies ahead but also understand where to focus their efforts for the greatest impact. FM isn’t just a tool for predicting financial performance; it’s a strategic partner in decision-making and long-term planning to control and optimise performance.