Demand from regulatory agencies and investors have called for alternative investment managers to adopt robust transparency reporting at all levels of the investment structure.

Diagnostic Assessment

Upon completion of each diagnostic, the fund will be given a score or 1 to 10 to determine the overall strengths and weaknesses of the funds’ reporting process. We identify material gaps relative to the latest industry and LP standards and provide actionable recommendations. Our assessments are based on extensive experience working with funds to develop “best in class” transparency documentation.

Key Factors

While always adjusted to our clients’ specific needs, key factors typically assessed in the Diagnostic Health Check may include the following:

Reporting Requirements

  • Conformity with Fund LPA
  • Fee and Expense Review
  • Frequency review
  • Benchmarking
  • Conformity with ILPA standard reporting
  • Portfolio Assessment

Roles and Responsibilities

  • Clearly defined financial reporting roles
  • Governance/Internal Valuation policy and procedures
  • Defined role of third-party valuation provider
  • Defined role of platform manager
  • Back-up and redundancy
  • Cultural hurdles

Technology Infrastructure

  • Fund-level accounting integration with reporting
  • Cybersecurity
  • Portfolio management systems integration
    • iLevel
    • Baxon
    • Black Mountain
    • Excel

Data Integrity

  • Sources of Information
  • Ownership of data
  • Data Tracing capabilities
  • Data Review process and procedures
  • Development of Chart of Accounts
  • Back Testing
  • Business Intelligence

Performance Reporting

Fund-level Performance
  • Strategy
  • Geography
  • Industry
  • Asset Class
  • Track Record
Asset-level Performance
  • Investment thesis
  • Current Performance
  • Valuation Methodology
  • Gross MoM and IRR
  • Exit Expectations
Risk Reporting
Fund-level Risk
  • Collateral and Counterparty Risk
  • Cost Exposure
    • Strategy
    • Geography
    • Industry
    • Asset Class
Asset-level Risk
  • Projections
  • Covenant Risk
  • Market Risk
  • Liquidity

Related Services

Best Practice Solutions & Implementation
Execution

Professionals

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Finbarr T. O'Connor

Managing Director

New York

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