For investment firms such as private equity and venture capital managers, operational risk and investment risk can dramatically diminish an investor’s assets in value. Operational Due Diligence (ODD) considers operational activities. It includes reviewing various operational risks across the firm, including regulatory compliance, the fund(s), information technology, operations and accounting, administrator, valuation, and service providers.
Identification and analysis of operational weaknesses are always easier with hindsight; however, this is a luxury that investors cannot afford.
My services?
Assist investors by performing tailored ODD reviews on private equity funds, venture capital funds, managed account platforms, and service providers and counterparties
Help managers become more institutional and attract more significant capital by preparing them for ODD reviews and upgrading their processes and controls.
As a former CEO who leverages automated machine learning, I can find blind spots across all departments and, most importantly, sniff out inconsistencies caused by department managers relying on specialty-specific data. i.e., marketing, product, and sales.
As opposed to Kroll or other firms, when you engage me, I also provide a detailed go-to-market to address shortcomings. This advisory is based on quantitative data and comes from years of experience.
Investor clients recognize that they have a fiduciary duty to assess and evaluate the business risks associated with managers effectively. I serve as a co-sourced partner with our clients in helping them perform this task on both an initial and ongoing basis. Most fund failures occur because of operational deficiencies instead of poor investment performance, and I play a crucial role in helping our clients avoid these issues.
Managers who utilize our services and follow our recommendations can demonstrate to their clients and prospective investors that they run an operationally sound organization. It needs to be better to show strong returns to an institutional investor. Sophisticated investors need to be confident that the proper infrastructure and controls are in place before investing.