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Private Equity Operational Due Diligence: Tools to Evaluate Liquidity, Valuation, and Documentation

Product ID : 3418835


Galleon Product ID 3418835
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About Private Equity Operational Due Diligence: Tools To

Product Description A step-by-step guide to develop a flexible comprehensive operational due diligence program for private equity and real estate funds Addressing the unique aspects and challenges associated with performing operational due diligence review of both private equity and real estate asset classes, this essential guide provides readers with the tools to develop a flexible comprehensive operational due diligence program for private equity and real estate. It includes techniques for analyzing fund legal documents and financial statements, as well as methods for evaluating operational risks concerning valuation methodologies, pricing documentation and illiquidity concerns. Covers topics including fund legal documents and financial statement analysis techniques Includes case studies in operational fraud Companion website includes sample checklists, templates, spreadsheets, and links to laws and regulations referenced in the book Equips investors with the tools to evaluate liquidity, valuation, and documentation Also by Jason Scharfman: Hedge Fund Operational Due Diligence: Understanding the Risks Filled with case studies, this book is required reading for private equity and real estate investors, as well as fund managers and service providers, for performing due diligence on the noninvestment risks associated with private equity and real estate funds. Review "An interactive guide for investors that explains what they should be looking for from private equity funds before they invest." ( Opalesque, September 3, 2012) From the Inside Flap Though not as prevalent as hedge funds, lucrative private equity and real estate funds handle billions of dollars versus hedge funds’ millions. Because of the vast amount of money invested in these funds, it is imperative that investors perform operational due diligence. Written to persuade Limited Partners once and for all of the benefits of performing and maintaining a robust operational due diligence program, Private Equity Operational Due Diligence arms you with the tools to develop detailed, agile, comprehensive, and ongoing operational due diligence reviews. Addressing the unique aspects and challenges associated with private funds, author Jason Scharfman shares his decades of experience performing due diligence on the non-investment (i.e., operational or business) risks associated with private equity and real estate funds. Beginning with a brief history of operational risk coupled with the unique aspects of operational due diligence on private equity funds, Private Equity Operational Due Diligence analyzes the approaches to valuation, legal, and financial statement risks. User-friendly flag icons throughout the text highlight key operational risk areas and deficiencies that have historically tended to signal larger problems. In this step-by-step guide, you’ll discover: Operational risk compared to operational due diligence Understanding the goals of the operational due diligence process Designing an operational due diligence program for private equity Key risk consideration areas Cash management and controls Business continuity and disaster recovery Valuation committee review scope Operational due diligence specialists versus generalists Trends in indemnification and exculpation clauses Fraud considerations: mortgage fraud and straw man borrowers Evolution of Minimum Operational Risk Regime (MORR) Ongoing fund monitoring techniques Private equity fund advisory boards Different types of advisory boards: Limited Partners versus Pure Advisors Case studies and scenarios Trends and future developments Use of third-party administrators Impact of Dodd-Frank on operational due diligence A companion website includes sample checklists and templates to assist with the techniques outlined in the book, including spreadsheets for financial statement analysis and legal document analysis, as well as links to various laws and regulations. It’s time to give operational due diligence