September 12, 2018
Corgentum Announces Release of New Private Equity Compliance Book
Compliance is one of the fastest growing areas in the private equity industry. In the current complex marketplace and with stricter oversight from regulators such as the US SEC and UK FCA, General Partner's (GPs) compliance spending has rapidly outpaced other private equity operating costs. Limited Partners (LPs) have similarly devoted increased operational due diligence efforts to analyze and monitor this increasingly complex space of private equity fund management.
Today Corgentum Consulting Managing Partner Jason Scharfman's new book Private Equity Compliance: Analyzing Conflicts, Fees, and Risks was released. This book serves offers a much-needed and down-to-earth guide that provides the most current information available on the key private equity compliance challenges and trends. Private Equity Compliance provides a next-step resource to Mr. Scharfman's previous book Hedge Fund Compliance: Risks, Regulation, and Management .
This essential book covers a wide-range of practical topics and real-world guidance on how to navigate the private equity compliance landscape. Key topics addressed in the book include:
- In-depth analysis of the core elements of a private equity General Partner's (GP's) compliance program
- Review of the role played by external governance mechanisms including Limited Partner Advisory Committees (LPACs)
- Analysis of the duties and responsibilities of third-parties in compliance including compliance consultants and law firms
- Analysis of essential compliance obligations in place at the General Partner, fund and underlying portfolio company levels
- Examination of recent and historical regulatory cases brought against private equity firms for alleged compliance violations in areas including fees and conflicts of interest management
- Due diligence considerations for Limited Partners (LPs) seeking to evaluate and monitor private equity compliance programs
- Examples of core private equity compliance documentation including the Compliance Manual and Code of Ethics as well as related compliance policies in a private equity fund's offering documentation such as the Private Placement Memorandum
- Analysis of the implications of technology and cybersecurity developments on the evolving GP compliance landscape
- Discussion of global regulatory trends impacting private equity compliance planning including the General Data Protection Regulation (GDPR), European Markets in Financial Instruments Directive II (MiFID II) and Packaged Retail Investment and Insurance-based Products (PRIIPs)
August 13, 2018
Corgentum Discusses Alternative Investment Manager Fee Models With FundFire
The various types and magnitude of fees charged by alternative investment managers is an area of ongoing scrutiny and debate among both investors and fund managers. Increasingly regulators have been stepping up enforcement actions surrounding not only which fees are charged to investors but the disclosures surrounding these fees as well as the timing of the charging of fees.
Corgentum Consulting Managing Partner Jason Scharfman recently discussed issues related to alternative investment manager fees with the Financial Time's FundFire. In an article title, "Janus Henderson Floats Performance-Based Fees to Jittery Clients" Mr. Scharfman also comments on the potential for increased risk seeking behavior associated with alternative fee models, as well as operational due diligence considerations for investors when evaluating fee models.
The full article is available on the FundFire website (subscription required).
May 14, 2018
Pre-Orders Now Available for Corgentum's New Private Equity Compliance Book
Corgentum Consulting announced today that pre-orders are now open for Managing Partner Jason Scharfman's new book on the subject of private equity compliance. Private Equity Compliance: Analyzing Conflicts, Fees, and Risks will provide readers with an analysis of the essential elements of a private equity compliance program, as well as feature exclusive interviews with private equity compliance practitioners.The book will be officially released on September 12, 2018, be sure you receive a copy on the day the book is released by pre-ordering today!
April 5, 2018
Join Corgentum at the Upcoming Private Investment Fund Operations and Compliance Forum EAST
As the fund manager landscape continues to evolve, so too do issues relating to fund operations and compliance that arise during the investor operational due diligence (ODD) process. To discuss emerging trends in this area Corgentum Consulting Managing Partner Jason Scharfman will be participating in a panel discussion at the Private Investment Fund Operations and Compliance Forum EAST.
Mr. Scharfman will be a presenter at the Private Investment Fund Due Diligence session that will take place on Monday June 11th beginning at 3:20pm at The Harmonie Club in New York City. Topics anticipated to be covered during the panel include:
- Key operational due diligence challenges investors face in analyzing hedge funds and private equity operations
- An analysis of the evolving compliance framework for fund managers in the US and Europe including a discussion of the impact of General Data Protection Regulation (GDPR) and compliance related cybersecurity trends
- Understanding the process of researching and hiring an investment manager
- How is due diligence being performed on the administrators and vendors?
- How is asset allocation determined and its impact on portfolio construction and manager selection?
- Necessary information for institutions – side letters, compliance certificates, risk transparency?
- Reading between the lines, recognizing information that is not verbalized
- Undisclosed information – how do you get it and verify it?
- What tools are out there to assist in due diligence of managers and funds?
March 19, 2018
Join Corgentum to Learn About Fund Manager GDPR Implementation Trends at the Upcoming Navatar Virtual Roundtable
Understanding the ways in which fund managers, including hedge funds and private equity managers, are responding to the challenges presented by complying with new regulations is a key part of the investor operational due diligence process. One example of an evolving regulation is the General Data Protection Regulation (GDPR) that comes into effect in May 25, 2018. Investors should be up to speed with the latest developments on the ways in which fund managers are implementing GDPR.
To provide additional perspective on this issue, Corgentum Consulting will be presenting at an upcoming GDPR virtual roundtable, hosted by Navatar. The webinar, Crossing the GDPR Finish Line as a Private Fund Manager, will take place on March 28, 2018 at 11am.
Topics to be covered during the webinar will include:
- How GPs on both sides of the Atlantic should approach GDPR
- Compliance traps unique to the private fund community
- Cloud considerations: What to expect from your outside IT partners
- Designing GDPR policies and procedures as an investment manager
January 23, 2018
Corgentum Announces 2018 Webinar Series to Kick Off 10th Anniversary
Corgentum Consulting announced today the launch of its 2018 webinar series beginning with "Launching an operational due diligence program for hedge funds and private equity." The webinar will take place on February 6, 2018, beginning at 10:30am EDT. Click here to sign up!
This new year brings with it a variety of revised compliance and regulatory changes that are directly impacting the way hedge funds and private equity managers operate. This webinar will provide an opportunity for investors considering launching an operational due diligence (ODD) program, those with existing programs, as well as ODD analysts to ensure they are up to speed with these latest developments. Topics that will be covered during the Webinar include:
- Items covered during a best practice operational due diligence review
- How to customize your operational due diligence process for different investment strategies
- Incorporating background checks be incorporated into the due diligence process
- How to evaluate important background investigation items including: previous education and employment, media and social media analysis, civil litigation and criminal searches
- Documenting your operational due diligence process
- Should ratings be included in the ODD process?
- Lessons for operational due diligence from recent regulatory enforcement actions
- Trends in service providers including hedge fund double administration versus private equity self-administration
- How to integrate the shifting priorities and reporting obligations of global financial regulators including the UK Financial Conduct Authority (FCA) , U.S. Securities and Exchange Commission (SEC) , U.S. Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) into your operational due diligence process
- Analyzing the impact of the General Data Protection Regulation (GDPR) - What funds are subject to it? How are funds changing their practice to comply with it? What questions should investors be asking about GDPR?
- European Markets in Financial Instruments Directive II (MiFID II) – How have hedge funds and private equity managers dealt with the 2018 transition process? What measures have funds taken to resolve issues surrounding research costs? How will these costs be allocated? Have funds revised their compliance policies and procedures to effectively address new practices under MiFID II?
- Packaged Retail Investment and Insurance-based Products (PRIIPs) regulations – Have funds worked with legal counsel to determine if they are subject to PRIIPs? How have they dealt with the accompanying regulatory reporting and disclosure requirements?
- Reviewing trends in compliance technology and cybersecurity approaches used by funds
Space is limited and priority access will be provided to premium subscribers of Corgentum's monthly newsletter, Due Diligence News.
Corgentum Marks 10th Anniversary
This year also marks Corgentum’s 10th year in operations. This milestone comes on the back of an announcement late last year that Corgentum has continued to expand its services. These new offerings include detailed fund analytics, cybersecurity due diligence, and more flexible background investigation options.
“While the operational due diligence landscape has continued to evolve, Corgentum is proud to have remained focused on providing institutional clients with consistently thorough deep-dive due diligence and investigations into fund managers of all strategies globally,” said Jason Scharfman, Corgentum Consulting Managing Partner. “We look forward to continuing to partner with investors to enhance their overall due diligence capabilities.”