Private Equity Fund Due Diligence experience, company, usually, whether, within

MythosHF

Apparently one of the consultants at the company that I work for was approached by one of his institutional clients and questioned as to whether or not we have experience conducting due diligence on Private Equity Funds. As is usually the case in these situations, the consultant professed to the client that we have a high degree of expertise in conducting due diligence on Private Equity Funds and that we would be able to complete an in depth analysis for them within two weeks. Unfortunately, we have never......EVER......conducted any due diligence on any Private Equity Funds. It has however already been promised to the client and the consultant feels that it would not be possible to re-work the promised deliverable or due date and to just "DO IT!" So does anyone happen to know of any resources that would get me up in running with the basics of Private Equity Fund due diligence in a hurry.......say......3 months ago or so?

Chuckrox8

ASSet_MANagement Wrote:
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> Drop the clients name

Depending what you are doing, this could be a very bad idea. Large family offices/institutional investors can be very touchy about this...

jcfa2011

ask for generic investor's presentation for basics, set up 1-1.5 hour interview with PM and VP (best case) or marketing/institutional sales (worst case). understand their organization, quality of people, philosophy, and sourcing capabilities.

thommo77

What poornewgrad said...
+ get your hands on the AIMA questionnaire for PE and have them fill it out (or google PE questionnaires and take someone elses and have them fill it out)
+ get a copy of the PPM and review it thorougly (mark up and review any yellow/red flags)
+ understand the distribution waterfall
+ verify historical performance (PE has a high degree of persistance)
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end of the day you're investing with the funds management

giants2010

Thanks everyone especially poornewgrad and the.unit.root! Great advice!