FUND MANAGER ACQUISITIONS/GP STAKES/REVENUE SHARES
Providing seed capital and/or buying into the general partner of a hedge fund is a significant endeavor that calls for deep dive operational due diligence. Operational due diligence will enable you to uncover your gaps before you enter into a financial transaction, and give you the leverage you need to negotiate a viable partnership. In the end, the due diligence findings will either confirm your intent to partner with a particular organization, or it will prevent you from making a potentially damaging business decision. Typically, the findings confirm one’s decision to transact, and assists both parties in growing the hedge fund’s operations and overall business. Around 15% of the time, the due diligence will reveal weaknesses that ultimately prevent a transaction from closing.