OPERATIONAL DUE DILIGENCE SERVICES
HEDGE FUNDS, PRIVATE EQUITY FUNDS, AND REAL ESTATE FUNDS
PRISM is a leading provider in hedge fund operational due diligence since 2009, serving institutional investors and funds around the world. PRISM’s founder has 23 years of operational due diligence experience, having evaluated over 2,400 hedge, P/E, and R/E funds and hundreds of financial firms. With outsourced operational due diligence, the client relies on PRISM’s expertise, and receives extensive independent assurance reports on each hedge fund, including an overall opinion on operational risk and benchmarking in each operational area.
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?
For the past 10 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 avoiding large scale frauds, and also avoiding investments in funds that follow inefficient 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.