Investment Manager Due Diligence

A significant number of hedge funds fail, not because of sub-optimal investment decisions, but due to operational issues.

We can support both hedge fund managers as well as hedge fund investors in structural and operational due diligence.

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For starting hedge fund managers, who expect a visit from the due diligence team of an institutional investor, we can do an internal review prior to such visit, in order for any actual or potential weak points to be highlighted and to be properly addressed. It is again seldom that due diligence teams from institutional investors given meaningful, if any, feedback and hence why an external review can be useful. Alternatively if you have been send a DDQ, we can assist in completing such DDQs.

For the BUY side of hedge funds, we can provide operational due diligence reports on potential investments on an ad hoc basis or ongoing basis.

As a previous Head of Research at one of Europe's largest third party marketers of hedge funds, we annually reviewed over a hundred hedge funds in any strategy, and for about 4-8 hedge funds per annum we undertook an in-depth due diligence prior to take-on, as the firm's due diligence had to stand up to scrutiny of best-in-class external operational due diligence.

As a previous Head of Operations for a hedge fund we are intimately familiar with the actual operations and various pitfalls to be addressed.

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Where we can and will provide "standard" due diligence services, we specialise in sensitive high-level structural due diligence assignments:

• In 2019, we provided to the Board of Directors and the shareholders of Pentalpha Capital Ltd an interim high-level structural due diligence report reviewing the proposed "merger" with Green Ash Partners LLP, followed by a full operational due diligence report.

• In 2020, we provided the Board of Directors of SQN Asset Finance Income Fund, a LSE listed investment fund with high level structural due diligence reports on three potential new investment managers as well as on the existing investment manager, who were participating in a "beauty parade" for a new investment management agreement. We also provided a detailed operational due diligence report on the selected candidate.

We focus on the "big issues" and in general will "discover" potential issues, which would not be usually become apparent in a "standard" due diligence process. Our ability to do so, is by extensive cross referencing, independent search and understanding the significance of certain details, based on many years of experience as a hedge fund manager and a hedge fund investor.

We only disclose clients' names upon their express permission and can and will act in a discrete manner as per our client's instructions.

Should you wish to discuss how we can be of service please email us on ts@hedgefundconsult.com or call on +44 207 6920036 or +44 7799 415788