Alternative Assets Meet Pricing Performance with F9Analytics Predictive Analytics

Predictive Pricing Technology helps investment managers navigate the increasing cost-of-capital to drive portfolio-wide investment performance

NEW YORK--(BUSINESS WIRE)--F9Analytics, the industry leader in predictive price management technology for alternative assets, announces the release of its performance pricing software for both commercial real estate and multifamily residential sectors.

The software uses applied mathematics rather than AI, to provide companies the competitive market advantage to leverage price to influence economic behavior and drive performance.

By combining individual company data with macro-economic data from the Federal Reserve, F9Analytics pricing algorithms provide companies the capability to generate pricing alpha across their real asset portfolio.

This excess return from pricing is consistent with studies done by McKinsey & Company and Deloitte, where “price management initiatives can increase a company’s margins by 2 to 7 percent in 12 months—yielding an ROI between 200 and 350 percent.”

According to John J. Cona, F9Analytics Chief Executive Officer, “Where AI is ill-suited for mathematical reasoning and therefore fails at maximizing the variables of price, F9Analytics relies on novel mathematical algorithms specifically developed for solving technically challenging problems in real estate finance.”

Unlike traditional revenue management software, which only focuses on maximizing revenue, F9Analytics software considers the costs and expenses associated with operating each property and unit, and adjusts prices accordingly to maximize profits – precisely where marginal revenue equals marginal cost. This distinction allows companies to solve for optimal prices that maximize their profits and efficiency at potentially lower prices than their inefficient “revenue only” peers; thereby increasing their market share over time.

Additionally, F9Analytics technology eliminates the ongoing legal risks companies face due to existing “revenue management” software that, according to lawsuits, effectively acts as a proxy for price fixing and other “unfair methods of competition” prohibited under the Sherman Anti-Trust Act.

By using F9Analytics performance software, companies can independently determine optimal prices that maximize their individual performance rather than indiscriminately outsourcing pricing analytics to an unrelated third party. This ensures that a company’s management of prices are independently optimal to maximize profits and individually competitive under fair competition.

Since 2013, F9Analytics extensive investments in research and development of proprietary financial algorithms have led to novel discoveries in applied mathematics that address fundamental problems beyond finance to the broader sciences. It is these long-term investments that allow F9Analytics to continue to lead the financial industry in the burgeoning field of predictive pricing analytics.

With its release today, F9Analytics continues to deliver on its long-term vision of analytic pricing performance, providing real estate companies the necessary algorithms and technologies for solving technically challenging problems across real estate portfolios – be it commercial or residential.