{"title":"Analysis of Three Emerging Trends in Limited Partner Operational Due Diligence","authors":"Jason A. Scharfman","doi":"10.3905/jai.2019.1.085","DOIUrl":null,"url":null,"abstract":"This article analyzes three key trends that have emerged among investors performing operational due diligence (ODD) reviews on third-party fund managers. The first trend is an increase in the scope of ODD reviews. The second trend is an expansion of the depth of ODD reviews. The third trend is a movement toward integration of ODD and investigative due diligence processes. Key Findings • Operational due diligence continues to receive more resources and attention from both investors and fund managers. • Investors are increasingly integrating the operational due diligence and investigative due diligence processes. • Investors are increasingly performing more frequent and rigorous operational due diligence reviews as fund operations have increased in complexity. TOPIC: Legal/regulatory/public policy","PeriodicalId":45142,"journal":{"name":"Journal of Alternative Investments","volume":null,"pages":null},"PeriodicalIF":0.4000,"publicationDate":"2019-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Alternative Investments","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.3905/jai.2019.1.085","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
This article analyzes three key trends that have emerged among investors performing operational due diligence (ODD) reviews on third-party fund managers. The first trend is an increase in the scope of ODD reviews. The second trend is an expansion of the depth of ODD reviews. The third trend is a movement toward integration of ODD and investigative due diligence processes. Key Findings • Operational due diligence continues to receive more resources and attention from both investors and fund managers. • Investors are increasingly integrating the operational due diligence and investigative due diligence processes. • Investors are increasingly performing more frequent and rigorous operational due diligence reviews as fund operations have increased in complexity. TOPIC: Legal/regulatory/public policy
期刊介绍:
The Journal of Alternative Investments (JAI) provides you with cutting-edge research and expert analysis on managing investments in hedge funds, private equity, distressed debt, commodities and futures, energy, funds of funds, and other nontraditional assets. JAI is the official publication of the Chartered Alternative Investment Analyst Association (CAIA®). JAI provides you with challenging ideas and practical tools to: •Profit from the growth of hedge funds and alternatives •Determine the optimal mix of traditional and alternative investments •Measure and track portfolio performance •Manage your alternative investment portfolio with proven risk management practices