OPERATIONAL DUE DILIGENCE SERVICES

HEDGE FUNDS, PRIVATE EQUITY FUNDS, AND REAL ESTATE FUNDS 

As a leading provider in operational due diligence since 2009, PRISM provides advisory services to institutional and private investors. PRISM’s founder has  23 years of operational due diligence experience, across well over 2,400 hedge, P/E, and R/E funds and hundreds of financial firms. PRISM LLC either acts as an extension of each client’s in-house staff, or provides completely independent outsourced operational due diligence services. With fully outsourced operational due diligence, the client relies on PRISM’s expertise, and receives extensive assurance reports on each hedge fund, including an overall opinion on operational risk and benchmarking in each operational area. Under a tailored advisory arrangement, the client performs certain due diligence functions in-house, while outsourcing other functions to PRISM. 

Benefits of Outsourcing Hedge Fund Operational Due Diligence

Partnering with an outside advisor provides an independent structural assessment, reducing conflicts of interest in the decision making process. Other benefits include PRISM’s ability to work with different clients at one time, and most importantly, PRISM’s long time experience evaluating well over 2,400 hedge funds provides an opportunity to understand the intricacies of each fund, organization, and the marketplace.

WHY CHOOSE PRISM?

Ultimately, for the past 9 years, institutional investors including funds of funds, wealth management platforms, university endowments, and pensions, have relied on PRISM to conduct operational due diligence on their alternative investments (i.e. hedge funds, private equity funds, and real estate funds). PRISM has done so with an end goal in mind of not only avoiding large scale frauds, but also avoiding investments in funds that follow less than efficient business practices (e.g. lack of the maintenance of complete financial records, weak internal controls, inadequate staffing). The scope of a review is an in depth process that meets the standards of the largest institutions. For assurance reports, PRISM dedicates extensive hours to performing site visits, conducting interviews, confirming information with third parties, reviewing legal documents, assessing the internal control structure, conducting due diligence on the fund administrator, and thoroughly understanding the fund and the manager. 

PRISM INSIGHTS: OPERATIONAL DUE DILIGENCE WHITE PAPERS

For additional guidelines on PRISM’s operational due diligence methodology and expertise, please see PRISM INSIGHTS 2015PRISM INSIGHTS 2016,  PRISM INSIGHTS 2017, and PRISM INSIGHTS 2018.