A VALUED PARTNER IN HEDGE FUND OPERATIONAL DUE DILIGENCE
PRISM builds relationships by providing an institutional quality operational due diligence service. Fees are structured based on engaging for a full scope structural and operational risk assessment, a review, or agreed upon procedures. A full scope assessment resembles in-house research at large institutional allocators, and has an overall structural approval. A review produces key information on a fund, but does not go as deeply as a full scope assessment. Agreed upon procedures are designed alongside the client to supplement due diligence work already being performed internally. The minimum account size is $50,000 per annum, and the baseline fee for an assurance report is $12,500-$15,000 per fund scaled down based on volume. For example, 12 assurance reports per year starts at $85,000, based on certain terms and conditions related to contract length, fund complexity, fund location, and timing.
THE BENEFITS OF OUTSOURCING HEDGE FUND DUE DILIGENCE:
It is imperative to objectively look at the operational risks of a hedge fund or a private equity or real estate fund, because performance goals and business and personal relationships inherently impair one’s judgment. Moreover, operational risk analysis is a specialized niche area of risk that requires a unique set of skills that is typically acquired through a career in audit combined with several years of training in operational risk assessments.
WHAT MAKES PRISM DIFFERENT?
As a privately held company, PRISM is focused on high quality analysis, client service, efficiency, and consistency. PRISM’s reporting has been tested and enhanced over several years with various institutional end users. The reports resemble sell side in depth institutional research reports that are meant for sophisticated hedge fund and private equity allocators. Reports are produced and distributed in the same month, and are not libraried and resold to various clients at future dates. The analysis therefore is systematically designed to effectively and efficiently aid asset management executives in making investment decisions.