The importance of private fund investor due diligence in the investment allocation process, in capital formation, and in private fund litigation has reached unprecedented levels and is further increasing. To provide the industry with data, data trend analyses, and guidance on applicable legal...

We estimate the economic value of due diligence (DD) in the context of private equity by investigating the relationship between DD and investee performance, while controlling for endogeneity. With the adoption of a novel dataset, we find evidence highly consistent with the view that a thorough...

Crowdfunding platform due diligence comprises background checks, site visits, credit checks, cross-checks, account monitoring, and third party proof on funding projects. We evaluate the factors associated with platforms' compliance expenses, and their due diligence application. We find that due...

Crowdfunding platform due diligence comprises background checks, site visits, credit checks, cross-checks, account monitoring, and third party proof on funding projects. We evaluate the factors associated with platforms' compliance expenses, and their due diligence application. We find that due...

This study provides evidence of significant biases in multi-year management forecasts by analyzing a proprietary dataset on venture-backed start-ups in Germany. We find that revenues and expenses are highly overestimated in each of the investigated one- to five-year-ahead planning periods....

The capital allocator is in the business of entering into partnerships with fund sponsors1 to potentially generate significant returns, mainly through long-term capital appreciation, by making, holding and disposing of privately negotiated equity and related investments. A methodical approach to...

The initial details concerning the largest alleged financial fraud in history are just beginning to come into focus, yet one thing is already clear, the repercussions of the Madoff scandal have elevated both regulators and investors concerns related to hedge funds operational (i.e. noninvestment...

The pre-investment due diligence is a comprehensive systematic investigation, verification and evaluation of the prospective project before funds are committed. The paper aims to develop a comprehensive due diligence and audit framework to facilitate consistent evaluation of investment...

Retirement plan sponsors in charge of $17 trillion have a choice. They can rely on luck or use discipline to properly discharge their fiduciary duties. The former may seem easy, but the costs of poor oversight easily outweigh the benefits of a ‘‘fingers crossed'' approach. Regulators have...

An analysis was conducted using a sample of over 275 global hedge fund allocators of the operational due diligence frameworks in place at these organizations. By developing an understanding of the operational due diligence structures in place, this paper establishes a transparent benchmark...