During the third quarter of 2014, the total capital in the hedge fund industry rose to $2.8 trillion, an increase of $18 billion over the previous quarter. This marks the 9th consecutive quarterly record-level of hedge fund capital according to Hedge Fund Research, Inc. As the Hedge Fund industry continues to grow, it’s getting more and more competitive to get in front of potential investors, especially investment consultants and plan sponsors. So, what are you doing to differentiate your firm and product offerings?
West Monroe Partners conducts due diligences for hedge fund managers to help them achieve institutional-quality processes. We guide hedge funds through a structured assessment to help them become better positioned to be included on an investment consultant’s approved list and gain traction in the institutional marketplace. We believe hedge fund consulting is not just a checklist process, rather an iterative exercise of gathering, assessing and analyzing a wide range of information to form a forward looking view. As such there is a significant subjective element to this process.
There are three main objectives to the due diligence process:
• Discovery: Understanding the goal of the hedge fund manager, gathering all the relevant data, and understanding the business, processes, and IT infrastructure/software environment in its current state.
• Process: Distinguishing strengths and weaknesses of the business, staff, investment process, risk management, and IT operations, and developing a strategic roadmap to better institutionalize its processes.
• Implementation: Maintaining an awareness of industry, market and product developments and ensuring we maintain a lasting relationship with the asset manager by introducing them to consultants, clients, and other industry contacts.
Are you ready to gain institutional clients? Do you know how to get on the approved list at investment consultants? Do you know what plan sponsors are looking for outside of great performance, low fees, and access to liquidity? Ask West Monroe Partners today and we can begin to get you on the right path toward your goals.