September 1, 2015
Corgentum Discusses Regulatory Trends With the Financial Times FundFire
The issues of compliance and fund regulations continue to remain at the forefront of investor's due diligence concerns. When combined with the enhanced pace of regulatory enforcement, investors are increasingly facing a myriad of complex compliance issues when analyzing fund managers.
To comment on these trends Corgentum Consulting Managing Partner Jason Scharfman recently sat down with the Financial Times FundFire. In a series of articles, Mr. Scharfman discussed several of the common compliance challenges fund managers may face and how investors should seek to evaluate them during the due diligence process. Additionally, in an article entitled, Squeezed by the Regulator? Admit Nothing , Mr. Scharfman outlines the increasingly difficult position fund managers face when determining whether or not to admit guilt when settling with financial regulators.
In another article, Managers Ramp Up Compliance amid SEC Crackdowns, he comments on the benefits of investors utilizing due diligence findings to encourage fund managers to enhance their compliance program. “The regulators are behind the curve, trying to catch up. They are pushing funds towards the best practices area,” Mr. Scharfman stated.
The full articles can be found of the FundFire website (subscription required).
July 8, 2015
Corgentum To Participate On Upcoming CAIA Due Diligence Panel
It was recently announced that Corgentum will be participating in the next Chartered Alternative Investment Analyst (CAIA) Virtual Chapter event. The event will be a webinar panel discussion focusing on trends in operational due diligence. Jason Scharfman, Corgentum Consulting Managing Partner will be a participant in the panel.
The webinar will take place in two session on July 22, 2015 beginning at 12pm EST. Readers can register for the webinar through a direct link on the CAIA Association website.
June 18, 2015
Corgentum's Jason Scharfman Featured in CAIA's Quarterly Publication Alternative Investment Analyst Review
The Chartered Alternative Investment Analyst (CAIA) Association's quarterly publication Alternative Investment Analyst Review recently conducted a featured interview about the current state of operational due diligence with Corgentum Consulting Managing Partner Jason Scharfman.
In the interview, Mr. Scharfman discusses Corgentum's role as a leader in the ODD space and comments on a variety of recent market trends. Specific topics covered in the interview include:
- trends in the analysis of hedge fund information technology infrastructures
- recent compliance developments and their impact on ODD analysis
- the changing role of governance analysis in alternative investments
- International trends including the state of the Japanese hedge fund industry
February 27, 2015
Does Your Due Diligence Process Need A Tune Up? - Signup for the Next Corgentum Webinar And Learn How To Improve Your Process With An Operational Due Diligence Consultant
Corgentum's complementary webinar, Improving Your Due Diligence Process With An Operational Due Diligence Consultant, will take place on March 18, 2015 beginning at 10:30am EDT. Signup for this session today!
Here is a description of key points that will be covered during the webinar:
The number of areas covered during the fund manager due diligence process has continually increased. This is particularly true in the area of operational due diligence (ODD) which in recent years has seen an exponential growth in the scope of reviews being performed. This expansion has brought with it a number of practical challenges including:
- Increases in the number of documents collected from fund managers
- Additional resources required to review and analyze documentation
- Enhanced ODD reporting requirements
- Increased ongoing monitoring including more frequent onsite visits with fund managers
- Requests for more rigorous background checks on more individuals and select service providers such as fund directors
Specialized operational due diligence consultants, such as Corgentum Consulting, can offer the necessary support to augment internal due diligence efforts through additional review capacity, geographic support and second opinions on complex funds.
At this webinar topics covered will include:
- Review of survey data on operational due diligence analysis trends in areas including compliance, governance, back office and fund accounting procedures, valuation and information technology
- Techniques for enhancing the background investigation process through integration with the operational due diligence function
- Learn how operational due diligence consultants utilize technology to enhance the due diligence process
Join Corgentum as they discuss approaches to common operational due diligence challenges and how an operational due diligence consultant can enhance the efficiency of the process by signing up today.
January 21, 2015
Corgentum to Present On Operational Due Diligence Best Practice At Endowment and Foundation Investment Management Winter Forum
As endowments and foundations (E&F) continue to remain large allocators to fund managers and alternative investments in particular, the attention paid to comprehensive deep-dive operational due diligence (ODD) and investigative due diligence (IDD) continues to steadily increase. In light of increased market volatility and enhanced compliance regulations in particular E&F investors are consistently faced with enhanced complexity in developing and maintaining a comprehensive due diligence program.
To provide E&F investors with guidance in this area, Corgentum Consulting Managing Partner Jason Scharfman will be presenting at The Investment Management Forum For Endowments & Foundations - Winter Forum 2015 , on February 7th at the Fairmont Scottsdale Princess in Scottsdale, Arizona. The members only session, hosted by NMS Management, , will be titled, Practical advice on implementing best practice operational due diligence.
- How endowments and foundations can develop a multi-asset class operational due diligence program across alternatives (hedge funds, real estate, private equity) and traditional managers
- The benefits of integrating the operational due diligence and investigative due diligence procedures
- How endowments and foundations can cope with the expanding scope of ODD and IDD
- Techniques for developing ODD and IDD ongoing monitoring programs
Eligible investors can register for the event directly via the Winter Forum 2015 website. We look forward to seeing you at the conference!
January 12, 2015
Are Private Equity Valuations Inflated? Corgentum Discusses With the International Business Times
The subject of private equity valuations, and the purported gains associated with them, has been receiving increased focus from investors and regulators in recent years. Certain academic research has raised questions as to whether private equity General Partners (GP) are painting too rosy a picture when presenting previous funds valuations. In particular concerns arise when GPs arguably inflate valuations when raising capital for new funds from investors such as pension funds.
Corgentum Consulting Managing Partner Jason Scharfman recently commented on the issue of private equity valuations with the International Business Times. Mr. Scharfman is the author of Private Equity Operational Due Diligence: Tools to Evaluate Liquidity, Valuation and Documentation, a leading text on private equity due diligence including how to review GP valuation approaches.
In the article titled, Public Pension Returns Inflated By Bogus Private Equity Returns , Mr. Scharfman commented on the role that General Partner valuations can play in the fund raising process. " Private equity firms are going around and raising money based on this performance data, so if the values are being artificially inflated, it makes them seem like they are doing better than they are and that ends up convincing investors to put more money into their next fund, ” said Scharfman.
The article also features perspectives on the issue of private equity valuations and the implication they have for pension funds from politicians including Ohio Senator Sherrod Brown and Massachusetts Senator Elizabeth Warren. The full article features can be read on the International Business Times website.
January 7, 2015
The Hedge Fund Journal Features New Hedge Fund Governance Book
As we enter 2015, interest continues to build in the subject of hedge fund governance and fund directors. Related to this trend, Corgentum Consulting Managing Partner Jason Scharfman's new book on the subject continues to garner attention from the hedge fund community.
As part of this continued interest The Hedge Fund Journal partnered with Corgentum to publish an article featuring an exclusive excerpt from the book. The article, Hedge Fund Governance - Being informed is crucial to judging directors objective which was released today, focuses on highlighting the key aspects of fund governance as well as the sometimes strained relationship between operational due diligence and fund director analysis.
- Techniques for analyzing governance at hedge funds beyond the fund directors including in the areas of valuations, service providers
- Interviews with hedge fund directors and financial regulators
- Approaches for investors and operational due diligence analysts to perform due diligence on fund directors
- Analysis of hedge fund internal governance mechanisms including compliance and valuation committeess and internal governance reporting mechanisms
The full article, including the book excerpt, can be read on the The Hedge Fund Journal website (subscription required) . Hedge Fund Governance: Evaluating Oversight, Independence, and Conflicts is now available for purchase on Amazon.