Hedge Fund Investment Due Diligence – Masters Level – NYC (December 10-11, 2018)
Through the use of a variety of instruction methods, class attendees can expect an engaging and highly interactive class experience. Class attendees will benefit from large and small group discussions, guest practitioners sharing their expertise and answering their questions, working through case studies, and completing work simulations.
- A deep and thorough background in the financial markets and securities
- An understanding of financial products including; hedge funds, private equity and separate account platforms
- A familiarity with quantitative analysis
- Knowledge and understanding of investment strategies
Download the Brochure
Module 1: Welcome and Introductions
Module 2: Why Do Hedge Fund IDD?
In this module, the class will explore the rationale for completing an IDD by reviewing several examples identifying where potential problems or risks might exist.
Module 3: IDD Best Practices
In this module, class attendees will work through methods for structuring their due diligence process to avoid sunk time cost. For example, employing the principles of quantitative analysis to filter through fund managers’ potential portfolio fit and exposure to risk. And, creating a framework for risk-based due diligence. (scorecard)
Module 4: Initiate the IDD Process
Class attendees will continue to develop strategies for avoiding sunk time cost by identifying ways of persuading the business development team to be their advocates for maximizing access to key personnel. And, techniques for persuading managers to reveal information they would rather not reveal
Module 5: The Initial Call and Gathering Additional Data
In this module, class attendees will craft their own plans for conducting the introductory call and meeting and ways of discerning whether there are particular hot button issues for some of the managers they encounter along the way.
Module 6: Pre-Due Diligence Questionnaire
Class attendees will build, send, and review the pre-due diligence questionnaire that will help them best determine whether to proceed with this fund. And, if so, what the next steps will include.
Module 7: Preparing for the Onsite Meeting
This module is all about how best to prepare for the onsite meeting. For example:
- Review organizational chart to identify key members with which to meet when onsite.
- Create manager-specific and strategy-specific lines of questioning.
- Best practices for sourcing points upon which to challenge the manager.
- Identify whether any conflicts of interest exist.
- Determine whether a manager places clients’ interest first.
- Evaluate vehicle structure and terms.
Module 8: Conducting the IDD Onsite Meeting
Class attendees will work through various aspects of conducting the onsite meeting. For example:
- Structuring the meeting
- Maximizing the effectiveness of information received
- Potential onsite portfolio review
- Evaluating the various aspects of the hedge fund managers’ business, investment process, investment team, and culture.
Module 9: Putting it All Together
In this module, the attendees will create an independent reference list and formulate the assessment.
Module 10: Conclusions, Next Steps, and Class Wrap Up
Using case studies and real-world examples, attendees will participate in discussions, complete materials for use back on the job, and develop their own process for completing Investment Due Diligence (IDD). In this two-day class, the attendees will:
- Map the Hedge Fund Investment Due Diligence (IDD) process.
- Maximize efficiency when conducting IDD.
- Develop a risk framework for IDD.
- Synthesize primary and secondary documents and materials.
- Plan, prepare for, and conduct the due diligence meeting(s).
- Integrate ODD into the IDD process.
- Complete the IDD assessment.
- Investment professionals from asset managers, such as pension funds, endowments, family offices, insurance companies, sovereign wealth funds, investment and development banks
- Hedge fund professionals interested in gaining a thorough understanding of the institutional investor’s perspective
- Policy makers and government officials who are responsible for regulating the financial sector
- Advisors working with hedge fund clients, including accountants, lawyers, bankers, consultants and financial advisors