2018 Alternative Investment Awards 8 Best Global Due Diligence Firm 2018 (5th consecutive year) & Best Alternative Investment Diligence Platform: DueDiligenceProfessional™ (3rd consecutive year) Castle Hall Diligence, the Due Diligence Company, is a leading innovator and specialist in operational and investment risk due diligence of alternative and traditional asset managers. We profile the firm to find out more about the range of services it offers. Company: Castle Hall Diligence Contact: Daryl Purdy, Vice President Email:
[email protected] Phone: +1-450-465-8880 x 236 Website: www.castlehalldiligence.com Castle Hall Diligence supports global institutional investors, fund of funds, advisors, family offices, foundations and endowments to identify and manage the business, operational, cyber and investment risks of asset managers. With a team of more than 50 professionals, Castle Hall deploys one of the industry’s largest and most experienced due diligence teams. Castle Hall’s core competitive advantage is DueDiligenceProfessional™, the firm’s proprietary online diligence platform, which has helped clients review diligence across several thousand fund entities. Now in its 12th year, Castle Hall diligence is proud to have been named the Best Global Operational Due Diligence Firm for five consecutive years, and to have the DueDiligenceProfessional™ platform recognized as the Best Alternative Investment Diligence Platform for the third consecutive year. Institutional allocators, private investors, intermediaries and other financial industry participants, are becoming more focused on best practice in Governance, Risk and Compliance oversite and responsibilities to manage overall portfolio risk on an ongoing basis. Historically, investment performance, return drivers and risk premia have been closely evaluated pre-investment, and monitored post-investment, to ensure investment objectives are met and investment risk is understood and controlled. As a focus on risk management and oversite expands, allocators and intermediaries now see the need and benefits to evaluating the operational risks across all third-party asset managers, pre-investment, and monitoring the changing operational risk environment at each manager post-investment, in the same manner as investment risks are evaluated and monitored across a portfolio. The challenge is to establish a sensible diligence and oversite policy, and to then execute that policy in an efficient and cost-effective manner. Against this backdrop, Castle Hall sees the emergence of a new paradigm in ODD, which they call Due Diligence 3.0. Due Diligence 1.0: Pre Madoff. Before 2008, operational due diligence was an optional, “nice to have” . For those investors who did conduct ODD, the process, scope and methodology of emerging ODD programs was very variable. Equally, there was a lack of commonality among hedge fund operating structures, exemplified by the existence of many self-administered funds. Due Diligence 2.0: Post 2008. In the Diligence 2.0 world, some level of hedge fund operational due diligence is now performed by virtually all asset owners. Diligence scope and methodology has also become somewhat more standardized, although some investors continue to have a “light touch” . Due Diligence 3.0 is a new model: Responding to the ever more sophisticated Governance, Risk and Compliance environment, Due Diligence Policy must now address four emerging themes and challenges for institutional and private investors. The first of these is the multiple asset classes that clients operate in. Operational diligence should be applied across all third party asset manager relationships, not just hedge funds. Investors focused on governance, risk and compliance now require consistent operational risk information across all fund and account holdings, irrespective of asset class. Secondly, a risk based approach is vital. Operational risks for mutual funds, long only managed accounts, private equity funds and real estate investments are very different as compared to a AI180009