Regulatory Compliance Association Reviews

Due Diligence – Legal & Operational

Date: September 26, 2019
General Session: 12:00 PM ET to 1:30 PM ET
Location: Webcast (Free)


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This course will cover a variety of topics relating to legal, regulatory, operational and investment due diligence in order to mitigate the risks associated with investing in privately placed funds. This course will cover a variety of perspectives on issues that should be at the forefront of each of your pre-investment reviews.

At the conclusion of this session, students will have mastered the following:

  1. What are 3 fundamental tenets (“must haves”) of a successful due diligence program?
  2. Alignment of interests between investment advisers and clients has been a hot topic for both investors and regulators. What areas of a due diligence program (i.e. employee personal trading, valuation, trade allocation policies, succession planning, etc.) are most important to consider when attempting to better align manager and investor interests?
  3. Have diligence processes and negotiations with alternative investment managers changed in the wake of the Kerner piece? What are new areas of focus built into the diligence procedures of large allocators recently?
  4. Indemnification and Exculpation: Is the liability of fund managers sufficient under most fund documents? Under what circumstances should managers be indemnified by the funds they manage? What happens if a manager settles a claim without an admission of guilt?
  5. Gating and suspensions: Will investors be protected during the next market downturn or illiquidity event? How to structure gating and suspension mechanisms that protect investor interests.
  6. Fees and Expenses: Auditing the fees and expenses charged to your fund/account. Common issues that arise with respect to expense allocations.
  7. Inhibiting liquidity: Are liquidating vehicles merely disguised side pockets? Should managers earn full fees on such vehicles if investor capital is not returned in a timely fashion?

Session Chairman:

Walter Zebrowski, JD, CPA, Principal, Hedgemony Partners
Chairman, Regulatory Compliance Association

Senior Fellow from Practice:

Scott Sherman, JD, GC, Tiger Management LLC

Guest Lecturers:

Kenneth Geller, JD, Senior Vice President & Counsel, Two Sigma Investments, LP

Matthew Lux, JD, Managing Director & Deputy GC, EnTrust Permal

Michael Holland, JD, CCO & Associate GC, Tilden Park Management LP

Brian Guzman, JD, Guzman Advisory Partners

Emily Farrell, VP, BAAM, Blackstone’s Hedge Fund Solutions

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