Thu, Jul 16, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Investors search social media platforms for the pre-investment background investigation

Wednesday, August 14, 2019

Laxman Pai, Opalesque Asia:

A new investor and operational due diligence (ODD) analyst survey revealed that investors shift focus to social media analysis during hedge fund and private equity background investigations.

62% of respondents stated that within the past year they have begun to search social media platforms such as Facebook, LinkedIn, Twitter and Instagram as part of the pre-investment background investigation process, according to Corgentum Survey.

Searches were on both the social media activities of the fund management company and individual employees. 38% stated that they have uncovered at least one negative item during social media searches that were omitted from more traditional investigations.

Additionally, 73% of respondents stated that would benefit from increasing the ongoing monitoring of fund managers social media on a post-investment basis.

Investors also felt that increased analysis of more traditional background investigation areas such as regulatory filings is increasingly producing diminishing marginal returns.

While 84% of investors stated they would like to be notified when a fund manager revises a filing such as the Securities and Exchange Form ADV, citing the sanitized nature of these filings, only 13% said that the information in these updates was useful in making an initial or ongoing risk assessment.

As a result, 48% stated they found more benefit in increasing the scope of litigation and criminal searches ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Satori Capital buys into hedge fund manager Mountain Cove Capital Management[more]

    Laxman Pai, Opalesque Asia: Dallas-based alternatives manager founded on the principles of conscious capitalism, Satori Capital has agreed to back compatriot investment firm Mountain Cove Capital Management. Satori, a multi-strategy firm with more than $1 billion in assets under management, co

  2. SEC proposes to amend Form 13F[more]

    B. G., Opalesque Geneva: The Securities and Exchange Commission (SEC) said on Friday that it had proposed to amend Form 13F - for the first time in more than 40 years. The proposal will update the reporting threshold (currently at $100m) for institutional investment managers and make other change

  3. News Briefs: An amateur investor turned $15,000 into $1m then lost it all, the latest cautionary tale in the day-trading frenzy, SoftBank-Backed Beike Zhaofang Aims to Raise $3bn in U.S. IPO[more]

    An amateur investor turned $15,000 into $1m then lost it all, the latest cautionary tale in the day-trading frenzy From Business Insider: Robinhood-user Richard Dobatse said he turned $15,000 into $1 million, and then lost everything. He told the New York Times: "They make it so easy fo

  4. PE/VC: Could this new metric upend private equity compensation?, Venture funding remains elusive for Black tech entrepreneurs in the US, Fintech to drive biggest VC exits over next five years, Second-quarter VC investing totals appear lackluster[more]

    Could this new metric upend private equity compensation? From Institutional Investor: A secondaries investor and public pension fund are publishing what they say is the first methodology for calculating the dollar value of excess returns generated by private market investments. The

  5. Activists: Effissimo tells Toshiba that shareholders make good directors, Japan activist calls in SPV cavalry for small-cap attacks[more]

    Effissimo tells Toshiba that shareholders make good directors From Reuters: Effissimo Capital Management, which wants to install three directors on Toshiba Corp's board, told the Japanese conglomerate's directors that shareholders make good board members because they are invested in the