We specialize in creating custom portfolios for individual clients. Investment plans are tailored according to each client’s objectives, biases, preferences and constraints.
The objective of our manager research process is to identify and gain access to best-in-class managers. In certain market segments, the best managers are widely acknowledged. In other market segments, the best managers are less well known. We proactively meet with established managers and continually conduct research to uncover managers not yet recognized by the broader market. Our due diligence process is continuous, as we develop insights on a manager’s team, competitive positioning and investment performance over years, rather than merely during a fundraising period. In evaluating managers, we leverage our entire team in conducting investment, operational and legal due diligence.
Operational Due Diligence
Operational due diligence is integral to our investment process. The objective of operational due diligence is to avoid investments where the operational risks are too high or to identify solutions to reduce the level of risk. Our operational due diligence entails investigating operations personnel, reporting and administration practices, conflicts of interests, legal liabilities, business continuation, risk management and internal controls.
Legal Due Diligence and Negotiations
The objective of legal due diligence is to align interests of the fund manager and limited partners through negotiation of fee structures and manager incentives, and to ensure good governance mechanisms are in place through negotiation of investment parameters, and suspension and termination rights. Our legal due diligence process entails reviewing manager documentation, comparing terms and conditions to industry standards and negotiating terms and conditions.
Monitoring, Compliance Checking and Reporting
Monitoring, compliance checking and reporting are critical components of our commitment to applying industry best practices in portfolio management. We believe active oversight can help guard against asset mismanagement. We monitor compliance with investment agreement terms. On an ongoing basis, we perform both qualitative and quantitative analysis of performance against expectations and versus peers. Our performance reports combine our insights on industry capital flows and valuation trends, with attribution analysis on individual managers and total portfolio performance.