Corgentum’s Consulting’s operational due diligence webinar series was recently featured in the Hedge Fund Law Report .

The first webinar in the series, Operational Due Diligence Survival Kit for 2012: Essential skills for uncovering and evaluating operational risk in hedge funds, private equity and traditional funds, outlined key trends for investors to consider when performing operational due diligence.  The Hedge Fund Law Report article, “Corgentum Webinar Highlights Trends, Challenges and Best Practices for Hedge Fund Investors in Conducting Operational Due Diligence” can be read on the Hedge Fund Law Report
website (subscription required) in Vol. 5, No. 16 (Apr. 19, 2012).

Corgentum has also recently posted a replay of the webinar on the Videos section of Corgentum.com. .

Readers can sign up for news related to upcoming Corgentum webinars focused on operational due diligence via the firm’s Contact page.

Click here to discuss this post.

Permalink.

Newly Released Handbook by Jason Scharfman is an Indispensable Guide for Assessing Essential Non-Investment Operational Risks and Mandatory Reading for Limited Partners

Managing Partner of operational due diligence consulting firm Corgentum Consulting and former senior team member at Morgan Stanley’s Graystone Research, Jason Scharfman, has authored a groundbreaking new book,

“Private Equity Operational Due Diligence: Tools to Evaluate Liquidity, Valuation and Documentation”, John Wiley & Sons, Inc., 371 pp , which is available today.

“Private Equity Operational Due Diligence” , addresses the unique aspects and challenges associated with performing operational due diligence reviews on both private equity and real estate funds. This essential guide provides readers with the tools to develop a flexible comprehensive operational due diligence program based on the author’s real world experience.

Corgentum is the preeminent global provider of independent operational due diligence reviews for investors. Scharfman is also the author of “Hedge Fund Operational Due Diligence: Understanding the Risks”, John Wiley & Sons, Inc., 300 pp, which is considered to be at the forefront of operational due diligence texts.

“Investors now have a comprehensive guide to develop and implement a functional operational due diligence program for private equity and real estate funds,” said Scharfman. “The techniques outlined in this book will allow limited partners to avoid risky funds and make better investment decisions.”

The 12 chapters of the book cover areas including techniques for analyzing private equity fund legal documents and financial statements, as well as methods for evaluating operational risks concerning valuation methodologies, pricing documentation and illiquidity concerns. The book is filled with case studies in operational fraud and other examples to help equip investors with the tools to avoid unnecessary operational risks and fraud. The book also outlines techniques for limited partners to incorporate operational due diligence into their private equity asset allocation and portfolio construction processes.

“Scharfman provides helpful insight into this emerging area of private equity risk,” said Francis X. Frecentese, Managing Director, Global Head of Alternative Investments, Citi Private Bank. “His guide offers limited partners the potential to efficiently identify and evaluate private equity operational issues and avoid unnecessary risk. Similarly, it offers general partners guidance as to best practices in light of institutional investors’ increasing demand to institutional-quality infrastructure and enhanced transparency.”

Additional topics covered include:

• Private equity fund advisory boards
• Valuation techniques, methodologies and standards
• Operational due diligence concerns specific to real estate funds
• Core issues to consider when beginning an operational due diligence review
• Advanced operational due diligence techniques when conducting an expanded analysis

A companion Website to the book includes sample checklists, templates, spreadsheets, and links to laws and regulations referenced in the book.

Private Equity Operational Due Diligence: Tools to Evaluate Liquidity, Valuation and Documentation is available for purchase via Amazon.com.

About Corgentum Consulting:

Corgentum Consulting is a specialist consulting firm that provides investors with the industry’s most comprehensive and in-depth operational due diligence reviews. Corgentum partners with private equity and hedge fund investors, including fund of funds, pensions, endowments, investment banks, investment consultants, ultra-high net worth individuals and family offices to improve upon the efficiency and effectiveness of the operational due diligence process. The firm’s proprietary due diligence methodologies and innovative original research allows their clients to continually manage and mitigate their operational risk exposures. Corgentum’s sole focus on operational due diligence, veteran experience, innovative original research and fundamental bottom up approach to due diligence allows the firm to ensure that its clients avoid unnecessary operational risks. Corgentum is headquartered at 26 Journal Square, Suite 1005, in Jersey City, New Jersey, 07306. Phone 201-360-2430. More information is available at
http://www.corgentum.com.

About Jason Scharfman:

Jason Scharfman is the Managing Partner of Corgentum Consulting. He is recognized as one of the world’s leading experts in the field of private equity and hedge fund operational due diligence. Before founding Corgentum, Scharfman held positions focused on due diligence and risk management at Morgan Stanley, Lazard Asset Management, SPARX Investments and Research, and Thomson Financial. He has consulted with the U.S. House Judiciary Committee on the subject of hedge fund regulation. Additionally, he has provided training to financial regulators on the subject of hedge fund due diligence.

Link to this release on PRWeb.

Click here to discuss this post.

Permalink.

Analyzing organizational culture is a key part of the operational due diligence process. Mr. Scharfman’s article discusses how evaluating a hedge fund’s corporate culture can detect meta risks, such as problems in organizational culture, that may lead to future operational issues. The op-ed piece also discusses how the operational due diligence process can provide cues to red flag due diligence issues (such as those in the AIJ scandal in Japan).

The article, Due diligence lessons from the Goldman Sachs resignation letter   is available at the Pensions & Investments website or via direct link  here.

Click here to discuss this post.

Permalink.

In anticipation of the upcoming book  a new promotional video has been released:

To pre-order the book please visit the publisher’s website.

Click here to discuss this post.

Permalink.

• How will SEC registration influence investor due diligence on hedge funds?
• Tools for investors to evaluate financial statement risk
• Considerations when analyzing administrator independence in the valuation process
• Diagnosing information security risks

This newsletter will be available on Corgentum Consulting’s website via direct link here.

Operational Due Diligence Insights also includes a section about Corgentum’s upcoming events like their new webinar: Operational Due Diligence Survival Kit for 2012. This webinar will be on March 15 from 2-3 pm EST and will give attendees vital information to asses and uncover operational risk in hedge funds, private equity and traditional funds.  Click here to signup for the upcoming webinar.

Readers can also visit Corgentum’s contact page to sign up to receive future issues as well as other Corgentum news and upcoming events.

Click here to discuss this post.

Permalink

At the panel sessions, it is anticipated that Mr. Scharfman will focus the discussion on upcoming trends in operational risk in alternative investments including hedge funds and private equity funds. Other topics which are anticipated to be discussed include the role of operational due diligence consultants such as Corgentum in designing a comprehensive operational due diligence solution, and operational due diligence challenges institutional investors can expect in 2012.

The panel Mr. Scharfman will moderate will be entitled, “Investing in Alternatives” and will take place on Wednesday February 15, 2012 at the Astor Crowne Plaza in New Orleans, LA.

To register for the event here, please visit the conference website.

Click here to discuss this post.

Permalink.

The panel will be entitled, “Hedge Fund Opportunities” will take place on Friday March 2, 2012 at the Crowne Plaza Times Square in New York, NY.

It is anticipated that Mr. Scharfman will discuss evolving trends in hedge fund operational due diligence for 2012, the benefit to investors towards working with operational due diligence consultants such as Corgentum, and the benefits of incorporating risk considerations into the hedge fund portfolio construction process.

To register for the event here, please click here.

Click here to discuss this post.

Permalink.

A jury recently handed down a sentence which found that the Galleon Group’s founder Raj Rajaratnam was convicted of insider trading. Bloomberg is reporting that jury never argued during 12 days of secret deliberations that he was innocent.  Instead the focus was on what sentence to give Rajaratnam. Here is a post about the Galleon verdict entitled, Galleon’s Fait Accompli : Investor’s Move the Dial Towards a Conservative Approach to Hedge Fund Research, on the Corgentum Consulting blog and some videos from the trail and verdict:

http://youtu.be/YKbqdE_BA5w

Click here to discuss this post.

Permalink.

The article is entitled, “Protection Racket – Investors rely on independent administrators like Citco to okay hedge fund books. But who’s watching these bookkeepers?” .

The article features Corgentum Consulting Managing Partner, Jason Scharfman discussing the role of hedge fund administrators in the investor operational due diligence process. Mr. Scharfman says, “ Part of the reason big-name administrators are winning more hedge fund assets is that they offer a false appearance of comfort and illusions of due diligence. Investors are still very much on their own in the hedge fund arena, ” says Mr. Scharfman.

The full article can be read on Forbes.com , in print editions of Forbes magazine for the week of April 25, 2011 or via direct link.

Click here to discuss this post.

Permalink.

A new article this week in HFMWeek focuses on operational risk and operational due diligence in hedge funds. Corgentum Consulting Managing Partner, Jason Scharfman is featured this week in the article.

In the article, which is entitled “Focus on Operational Risk” Mr. Scharfman discusses the enhanced focus which investors and hedge funds have placed on operational risk management and operational due diligence in the aftermath of the financial crisis.

Mr. Scharfman also cites Corgentum’s proprietary research which demonstrates an increasing trend that managers with weaker operational infrastructures demonstrate lower performance as opposed to those with stronger operations. Other key operational risk considerations outlined by Mr. Scharfman in the article include:

• The presence of conflicts of interest related to providing operational due diligence services to both hedge funds and investors
• The dangers of over reliance on hedge fund regulation to supplant investor’s own due diligence efforts
• Ways in which investors can benefit from having an independent third party consultant such as Corgentum assisting with operational due diligence reviews
• The benefits to a hedge fund’s operations of proper internal resource allocation and management oversight

The article can be found in print editions of HFMWeek at HFMWeek.com, or via direct link.

Click here to discuss this post.

Permalink.