13 Jun 2011
Amber Partners, the operational risk assessor, has launched an operational due diligence health check that can be used by hedge fund investors. The move follows increased interest from fund of hedge fund managers, investors in funds of hedge funds, and from institutions with a hedge fund portfolio.
Such investors are seeking an independent review of the operational due diligence they perform on their underlying hedge funds. It has been found that a periodic health check is a very useful risk management tool to ensure a high standard of due diligence and to reduce business risk.
Amber Partners’ review assesses a firm’s operational due diligence process to ensure that it is sufficient in scope and depth, and in line with widely accepted standards of due diligence. The review will provide recommendations on areas which need improvement as well as highlight practices which are in line, or indeed above, their peers and competitors. Based on a review of a sample of operational due diligence reports, Amber will also determine whether or not the firm is carrying out its operational due diligence, as purported to its board of directors, trustees and investors.
Amber has also announced an enhancement to its annual operational re-certification. Each year, Amber may issue either a full operational certification report (as in the initial year) or a shorter operational certification update. Managers with less than $1 billion in assets may be eligible for a fee discount if an operational certification update is requested.
Both moves highlight the increasing attention investors and managers are placing on operational due diligence procedures. Amber is a leader in the field with its global team combing over 80 years of due diligence experience, which is spread across ODD, fund operations, operational risk management and fund administration.
Such investors are seeking an independent review of the operational due diligence they perform on their underlying hedge funds. It has been found that a periodic health check is a very useful risk management tool to ensure a high standard of due diligence and to reduce business risk.
Amber Partners’ review assesses a firm’s operational due diligence process to ensure that it is sufficient in scope and depth, and in line with widely accepted standards of due diligence. The review will provide recommendations on areas which need improvement as well as highlight practices which are in line, or indeed above, their peers and competitors. Based on a review of a sample of operational due diligence reports, Amber will also determine whether or not the firm is carrying out its operational due diligence, as purported to its board of directors, trustees and investors.
Amber has also announced an enhancement to its annual operational re-certification. Each year, Amber may issue either a full operational certification report (as in the initial year) or a shorter operational certification update. Managers with less than $1 billion in assets may be eligible for a fee discount if an operational certification update is requested.
Both moves highlight the increasing attention investors and managers are placing on operational due diligence procedures. Amber is a leader in the field with its global team combing over 80 years of due diligence experience, which is spread across ODD, fund operations, operational risk management and fund administration.
