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Hedge Fund Operational Due Diligence Fundamentals – New York

October 16 - October 17

In Person
2 Days
English
Intermediate

October 16-17, 2018 – New York

This program focuses on the skills and knowledge the institutional investor needs to be empowered to understand the transaction, to assess the value of the transaction and to ensure that returns and rewards are greater than the risks and exposure of the transaction.

Each day will begin at 8:30 am with registration and coffee, tea and a light breakfast will be supplied. This is a great time to meet the instructor and your fellow attendees. The program will start promptly at 9 am, though we may conclude earlier, please plan to stay until 5 pm each day. Lunch will be provided and dress is smart casual.

Prerequisite knowledge:

  • Basic understanding of the financial markets and securities
  • Basic understanding of financial products including; hedge funds, private equity and separate account platforms
  • Basic knowledge of financial statements
  • Basic knowledge of investment strategies

 

Click here to download the brochure.

Day 1 – Operational Due Diligence Fundamentals, Practices and Procedures

Day 1 of the course provides participants the advanced skills needed to execute operational due diligence strategies effectively.

Module 1 – Introduction

  • What are the components of a comprehensive due diligence framework and process?
  • Differences between PE, HF, Real Estate related processes
  • Difference between operational and investment due diligence
  • Overview of how operational due diligence is conducted and implemented
  • Discussion of qualitative vs. quantitative processes and conclusions

Module 2 – Document review and information gathering – Hands On

  • Description and review of key documents in Due Diligence Process
  • Legal
  • Marketing
  • Reporting
  • Offering
  • Compliance
  • Reconciling fund documents
  • How to analyze the key documents

Module 3 – Red flags

How to look for, identify, examine and mitigate risk during the due diligence process– Hands on exercise

Day 2 – Evaluation of Infrastructure and Financial Document Review and Analysis

Day 2 of the course provides participants the advanced skills needed to gather, evaluate and make informed due diligence decisions.

Module 1 Infrastructure

  • How to evaluate the manager’s organizational hierarchy
  • Investment strategy and implementation
  • Trade processing
  • Internal controls
  • Compliance policies and procedures
  • Business Continuity / Disaster recovery plan
  • Cybersecurity

Module 2 – Legal, Tax and Accounting

  • Asset verification
  • Taxation Structuring, Tax Practices and holding periods
  • Review legal structure
  • Review investor table & share classes, understand how everyone is treated
  • Audit firm / audit opinion/ audit delay issues
  • Review of Valuation Policies and Procedures

Module 3 – Managing External Relationships and procedure – Service providers and counterparties – selection, service level, monitoring process

  • Understanding and Evaluation Counterparties and Counterparty Risk
  • Service providers

Module 4 – Fees, Expenses and Fund Organization Profitability

  • Fees and expenses analysis – Types of Fees Types of Funds: Venture, Mezzanine, Buyout /Corporate Finance, Distressed, Short Bias, Long/Short Equity Fund size relevance
  • Review organization ownership
  • Review org expenses
    • GP – Overhead
    • LP – Fund Expenses
    • LP – Management Fee
    • LP – Carry / Incentive
  • Track record / IRR calcs
  • Gross vs Net Decay – return potential and alignment of incentive

Download the Brochure

Desk-Ready Skills

  • Difference between operational due diligence and investment due diligence
  • How to evaluate a fund manager’s operation
  • How investment funds are structured
  • How to read fund documents and financial statements
  • How to evaluate compliance procedures at an investment manager
  • How to monitor managers once an investment is made
  • How to create and implement operational due diligence policies and procedures
  • How valuation concepts would be applied in operational due diligence

Download the Brochure

Recommended for:

  • Institutional Investors
  • Pension/Retirement Funds
  • Mutual Funds
  • Foundations & Endowments
  • Family Offices
  • Pension plan consultants

As well as:

  • Managers: Hedge funds, Fund of Funds, all alternative investment managers
  • Due diligence consultants, valuation consultants, background checking firms, prime brokers
  • Advisors, sub-advisors

Download the Brochure

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Member $1795
Non-Member $1995

SCHEDULE

October 16 - October 17

LOCATION

1301 Avenue of the Americas
New York, 10019 United States
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Download the Brochure