Trust, but Verify
Operational due diligence is about understanding a manager’s internal operations to protect investors from losses related to operational failures. Our reports are designed to empower you and to help you understand all areas of operational risk.
Each review assesses an asset manager and fund’s commitment to regulations and industry best practice standards. Each Laven reviews tailors the report content to the fund asset class to assess the operational areas unique to the proposed investment. An integrated scoring system per chapter and an overall report score provide clients with a benchmark from which to assess and compare managers. Following an instruction to perform an ODD 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 to discuss any areas of special focus. Potential areas of concern are highlighted from the desktop analysis and we present any specific areas or topics that require further discussion with the manager.
Usually lasts 5-6 hours and consists of interviews with senior management as well as other staff of the manager, based on their roles and responsibilities. Each due diligence review typically includes interviews with the executive teams, portfolio management, back office/operations, risk management, IT, ESG and compliance functions.
We then analyse the information gained from the onsite visit and prepare the report using our in-house due diligence software. Each report details our analysis and includes an executive summary highlighting any red flags and concerns raised during the due diligence. We also hold a debrief call with you to review our findings and to give you the opportunity to ask any questions.
We believe using an expert due diligence provider like Laven can help you to focus your efforts on setting and achieving your investment objectives, while leaving the leg-work to us.
LavenTech contains the Due Diligence Manager (DDM) bundle that digitalises 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.