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Private Equity Diligence Research

What is private equity due diligence
and why we should do it.

London

Private equity (PE) is a category of capital investments made into private companies. Private equity firms invest in private companies by purchasing some or all of the shares with the expectation that by a certain date the value of the shares will be worth more than their original investment.

Why operational diligence is needed on private equity investments

Traditional investments like stocks, bonds, and cash enjoy operational risk protection due to the strict rules dictated and enforced by the US Securities and Exchange Commission (SEC). PE however is in an unregulated asset class of capital investments called alternative investments which do not benefit from those rules. The operational and financial controls that regulation brings to traditional investments are absent for most alternative investments especially private equity investments. To make up for this lack of operational risk mitigation careful reviews of the operations of the target entity is essential to minimize PE operational risk.

Due diligence challenges unique to private equity

The companies that allocators are looking to invest in are typically privately held so researchers have to work more diligently to trace the proper corporate governance and personal historical data needed to warn the investment team of an unknown risk.

Where do we start?

PE due diligence is typically guided by the confidential information memorandum (CIM) and the Due Diligence Questionairre (DDQ) which includes an overview of the management team and company history. The purpose of the background investigation within the diligence process is to check this information for accuracy and to look for omissions that could indicate an undocumented risk to your potential investment.

What matters the most

Many consultants hired by private equity investors just provide the first aspect of proper due diligence. Called confirmational or confirmatory diligence, this just confirms what is self-reported in the CIM or DDQ. Check Fund Manager's process does not stop there but proceeds much deeper into the depths of personal identifying information and corporate governance to uncover unreported and potentially deal breaking red flags.

Markets Served

Check Fund Manager is a boutique investigations firm that serves investors in all alternative investments including PE. Due diligence background checks on the principals of the target company are a critical component of this operational review process. Established Institutional investors typically have personnel and infrastructure in place who contract us to perform due diligence background investigations as part of their operational diligence research. Institutional investors we serve include Endowments, Foundations, OCIOs, Family Offices, and Investment Advisors.

Why hire you, can't I do this myself?

You would hire us to perform Due diligence background checks for two primary reasons. First is the experience our investigators have conducting thousands of such inquiries. Second is the level of access we have to personal identifying information, court records, and corporate governance information.



Learn More about
Check Fund Manager's
Private Equity Investor Diligence

Contact us to see examples of what our research entails.

Client Testimonials

"The background reports received from Check Fund Manager are meticulously organized, featuring a comprehensive executive-level analysis that brings attention to crucial aspects, accompanied by detailed information gathered during the evaluation. Their openness to exploring more nuanced searches adds to the positive experience we consistently have when engaging with them."
Children's Medical Foundation Investment Office Children's Medical Center Foundation Investment Office

"The Check Fund team always delivers! Their research is timely, thorough, comprehensive and they have great customer service. We appreciate all their hard work and are glad to work with them."
J.M., VP of M&A | Dental Service Organization

"Your check alerted us to several large lawsuits.... they have been subject to at least a dozen other investigations, and yours was the only one to catch these lawsuits..."
Large University Endowment Fund

"Thank you...These [WatchList] updates are the second most valuable part of the Check Fund service, after the initial investigations themselves and the dedicated team you have there at Check Fund. Much appreciated!"
Multi-Family Office
Santa Monica, CA


"We were ready to make an investment until your report showed all the reasons not to do so. Thanks. So glad we used your service. You saved us from making a costly mistake."
Fund of Funds Manager
New York, NY


"Thanks for getting all 50 requests done in less than 72 hours, great job, very comprehensive research and excellent communication. Will be glad to be a reference for you."
Capital Markets Investment Manager
Chicago, IL






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