Assess the Risks
Laven has over a decade of experience in assessing risk policies, risk measurement, regulatory compliance and investment due diligence.
Laven has a proven approach to offering bespoke independent due diligence and risk analysis on complex investment strategies ranging from liquid to illiquid portfolios.
Investment and operational due diligence are highly complementary, as these two services combined are able to better assess the Manager’s specific investment processes, systems and team composition, and compare these with their operational counterparts.
Following an instruction to perform IDD on a fund, we take the following steps:
We contact the manager to request over 60 documents and to set a date for the onsite visit. Once we receive the documentation, we perform a detailed desktop analysis, specifically highlighting any areas or questions that require in depth discussions onsite.
We schedule a call with you as the client to discuss through any areas of special focus required following the desktop analysis.
This usually lasts 5-6 hours and consists of discussions with senior management as well as other staff of the manager, based on their roles and responsibilities. This typically includes discussions with the executive teams, portfolio management, back office/operations, risk management, IT and compliance functions.
We then analyse the information gained from the onsite visit and prepare the report using our in-house due diligence software. The report details of our analysis and includes an executive summary highlighting any red flags and concerns raised during the IDD. We also seek to hold a debrief call with the client to go through our findings and to give the client the opportunity to ask any questions.
Laven will help you to effectively identify those investment managers best aligned with your organisation’s people and philosophy, while eliminating those whose investment and operational processes may present excessive risks.
Our risk measurement and analysis is provided by our strategic partners at Clarus Risk.
Laven developed the Due Diligence Manager (DDM) digitalising operational due diligence and report production. The DDM is designed to remove errors and inconsistencies in the content and the creation of the report. It allows subject matter experts to focus on their areas of expertise while ensuring time efficiencies and project management. We use the DDM technology for our outsourced ODD work. The software is also available for direct licensing by clients.
The following FAQs have been created to assist following the best practice standards and adhere to the relevant regulatory requirements.