Operational Due Diligence

Our team offers a unique insider’s lens into investment strategies and operational infrastructures as well as the experience to effectively identify gaps that could lead to operational failures.

Operational Due Diligence

Our team offers an outsourced solution for Investors seeking external, senior-level expertise, to provide guidance regarding best practices and to provide operating leverage and guidance to help them complete what is often a labor-intensive due diligence exercise.

1. Exhaustive review of key documents of the firm and fund:
Detailed review of DDQs, Organizational and Operative Documents, Audited Financial Statements, Valuation Policy, BCP/DR policy, ESG policy and reports and Compliance Manual.

2. Thorough onsite meeting with the heads of back-office functions:
Obtain understanding of control environment including financial stability, operational and compliance staffing and experience, controls around trading and execution, conflicts of interest and incentives, role of management (tone at the top), committees and directors, IT infrastructure and disaster recovery, business continuity policy and oversight of third party service providers.

3. Discussion with key service providers:
Independent verification of scope of services being performed (by administrator, prime broker, custodian, auditor and legal counsel). Confirmation that there have been recent changes to service level agreement, no issues with NAV reporting and no disagreements or noncompliance with valuation policy and procedures.

4. Background Checks and Regulatory Review:
Review of SEC's Investment Advisor Public Disclosure website, independent background check scouring credit reports, news coverage, social media, and criminal, civil and bankruptcy court records. Searches aren't just for investment and financial data but also for other items that can point to personal behavior and judgment.

5. Ongoing Monitoring:
Ongoing reviews include desktop reviews, conference calls, and additional on-site visits, if needed. On-going reviews are conducted to identify and assess material changes to operational control environment (for example C-Suite departure or change in third party service provider).

Supporting Team Members

Portrait of Ed Fasano

Ed Fasano

Managing Member

Pre-Launch

Custom Projects

Operational Due Diligence

Portrait of Mike DiRocco

Mike DiRocco

Operations

Custom Projects

Operational Due Diligence

Portrait of Patrick Milligan

Patrick Milligan

Pre-Launch

Custom Projects

Operational Due Diligence

Portrait of Barry Ipp

Barry Ipp

Operational Due Diligence

Get in touch with EAC

The team of CPAs, CFOs, COOs, and accounting and operation professionals combines for hundreds of years of hedge fund experience with some of the largest and most complex industry leaders.

Don't hesitate to reach out, we'd be happy to help.

Or, send an email to us directly:info@eacllc.com

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