KBA Fund Services KBA Manager Services

Preparation for Operational Due Diligence

In an extremely competitive market for investor capital, it is important that both the fund and manager have the necessary operational infrastructure to pass investor due diligence reviews. Such due diligence reviews are increasingly focused on operational issues. The focus of investor due diligence is evolving rapidly and it is imperative that proper governance and operating procedures are in place.

KB Associates reviews the operational infrastructure and processes along with the materials to be provided to potential investors to help identify any potential causes of investor concern.

Areas of particular focus include:

For the Manager

  • Due Diligence Questionnaire (“DDQ”) documentation
  • Adequacy of the compliance function
  • Appropriateness of the cash management process and controls
  • Extent of risk measurement and controls
  • Quality and appropriateness of professional advisors
  • Business continuity planning arrangements

For the Fund

  • DDQ documentation
  • Service providers utilised including prime brokers, custodians and administrators
  • Procedures ensuring the security of assets
  • Valuation Policy
  • Quality and appropriateness of professional advisors
  • Board composition and frequency of meetings

Recommendations are provided as to how enhancements may be made which will ensure that operational matters are a positive factor in the decision making process of potential investors.