Due diligence is both a science and an art. The science is ensuring that the same exact steps are followed every time and that no shortcuts are taken. The art is ensuring that after having followed the process, no questions remain unanswered. There is nothing worse in due diligence than ambiguity.

We call this process ‘trust but verify’. We trust by reviewing documents provided by managers and listening to their explanations. But we can only believe once we can verify information using a mixture of proprietary techniques of corroboration and on-site spot checks. Only then can we claim to have performed a detailed due diligence.

Due diligence is not just about detecting fraud. Due diligence also protects investors from general risks such as weak operations, weak infrastructure, poor team cohesion and management, over-concentration on investments and excessive leverage. As part of our due diligence we review a number of key areas including:

• Background Checks
• Independence of Service Providers
• Regulation & Compliance
• Risk Management Processes
• Operational Processes
• Liquidity mismatch
• Front to Back Office Processes
• Business Continuity

We work with a number of highly respected private banks and pension funds, and provide our clients with a unique solution to analysing the risks of investing in investment structures, particularly hedge funds and fund of hedge funds.

For more information about our due diligence services, please email us.