MANAGER MANDATED ODD REVIEWS
The evolution of ODD.
Today’s fund manager is competing for institutional capital in order to maintain, or build a stable and steadily growing asset base. PRISM conducts manager mandated operational due diligence reviews for managers of all sizes. Confirming your existing confidence in your firm’s infrastructure, or having the ability to enhance operational gaps before business is lost, can be invaluable to an organization.
WHY COMMISSION YOUR OWN ODD?
There are tens of thousands of alternative investment funds globally, and each fund undergoes a separate operational due diligence assessment for each investor. This is a time consuming and expensive endeavor for both the manager and each investor. PRISM provides funds with the option of undergoing one independent due diligence assessment that can be used by all of the fund’s investors. Serving as a gatekeeper, PRISM provides one comprehensive Annual Due Diligence Report that measures whether or not a fund meets today’s operational requirements. PRISM has set its approval guidelines to meet strict institutional standards.
WHO SHOULD OBTAIN THEIR OWN ODD?
PRISM’s clients who seek an independent ODD assessment of themselves are typically successful managers who already have anywhere between a few hundred million dollars to tens of billions of dollars under management, but are looking to take on larger clients or get in front of large consultants who have a position in the market to influence the fund’s capital raising. Some investment managers also look at mock audits as “a team building exercise” or an “endorsement of their infrastructure” not just to clients, but to their managing partners.
Overall, the operational and structural assessment provides investors with ongoing due diligence at no direct cost, as the reports, like a financial statement audit, are available to all fund LPs. PRISM’s work meets institutional standards, and is suitable to supplement or replace in-house due diligence. Further, it enables managers to utilize the due diligence assessments to grow their business.
Pricing is dependent on the complexity of the fund and the investment manager, and is based upon billable time and other risk factors.