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Jason Scharfman By Benedicte Gravrand, Opalesque Geneva:
Jason Scharfman runs an operational due diligence consulting firm called Corgentum Consulting , LLC, out of Jersey City, NJ. The firm performs reviews of funds, including hedge funds and private equity funds, for investors.
Ahead of his new books coming out later this month called Private Equity Operational Due Diligence (Wiley), his recent survey of approximately 150 Limited Partners was conducted in order to gauge trends in operational due diligence on private equity.
Regardless of any social or political criticisms, investors continue to invest in private equity (PE) funds, the survey says. As allocations to private equity funds continue to increase, so too does the level of scrutiny investors incorporate into this process.
87% of the survey respondents perform some kind of operational due diligence (DD) on fund managers. Of those, 62% do it internally, and most of their employees responsible for conducting DD also have other responsibilities. 24% of the investors who conduct DD use consultants, and many of the latter also provide investment advice.
Hedge funds are where the risk is, apparently. 84% of respondents think hedge funds have more operational risks, as compared to PE. Linking to that, 74% s...................... To view our full article Click here
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