Vela is transfer-pricing analytics for intercompany financial transactions. It helps tax and treasury teams price intragroup loans, guarantee fees and related arrangements in a way that is consistent with the OECD Transfer Pricing Guidelines (Chapter X) and defensible in front of a tax authority.
Why Vela exists
Pricing intercompany finance well usually means stitching together a credit rating, a probability of default, a recovery assumption, a cost of capital and a set of market comparables — each from a different place, each needing to be explained to an inspector. Vela brings these into one transparent workflow and produces working papers that show every number and its source.
Our approach
- Transparent, not a black box. Every output decomposes into its inputs, the formula applied, and the public source behind each figure.
- Built on public, citable methods. The probability of default uses the EU regulatory benchmark (Commission Implementing Regulation (EU) 2016/1799), loss-given-default uses Basel Foundation-IRB supervisory values, and the cost of capital uses CAPM with Damodaran inputs.
- Original credit scorecards. Vela's sector credit scorecards across 22 industries are our own, calibrated in-house, and expressed on a 0–100 Vela Credit Score that maps to an international-scale rating equivalent.
Who builds it
Vela is built by João Ferreira, MBA candidate at Chicago Booth, drawing on Big-4 transfer-pricing experience. It is an independent product and is not affiliated with, or endorsed by, any rating agency.