Private Equity Operational Due Diligence: Tools to Evaluate Liquidity, Valuation and Documentation

Publications

Private Equity Operational Due Diligence: Tools to Evaluate Liquidity, Valuation and Documentation

Jason Scharfman, Managing Partner,
Corgentum Consulting, LLC

Addressing the unique aspects and challenges associated with performing operational due diligence review of both private equity and real estate asset classes, this essential guide provides readers with the tools to develop a flexible comprehensive operational due diligence program for private equity and real estate. It includes techniques for analyzing fund legal documents and financial statements, as well as methods for evaluating operational risks concerning valuation methodologies, pricing documentation and illiquidity concerns. Private Equity Operational Due Diligence: Tools to Evaluate Liquidity, Valuation and Documentation covers topics including fund legal documents and financial statement analysis techniques. Filled with case studies, this book is required reading for private equity and real estate investors, as well as fund managers and service providers, for performing due diligence on the noninvestment risks associated with private equity and real estate funds. This book also includes case studies in operational fraud and equips investors with the tools to evaluate liquidity, valuation, and documentation. A companion website to the book includes sample checklists, templates, spreadsheets, and links to laws and regulations referenced in the book.

Overview

  • Outlines techniques for Limited Partners to incorporate the operational due diligence process into the private equity asset allocation and portfolio construction processes
  • Analysis of proprietary operational due diligence studies conducted by Corgentum Consulting, including an overview of legal documentation trends
  • Details red flag detection techniqes for operational reviews of management companies, General Partners, fund level and service provider operational reviews
  • Discusses the fraud detection aspects of operational due diligence including case studies in private equity and real estate fund fraud
  • Release date: April 10, 2012

Topics Covered Include:

  • Case studies in operational fraud
  • The importance of operational due diligence reviews for private equity and real estate funds
  • Private equity fund advisory boards
  • Valuation techniques, methodologies, and standards
  • Legal due diligence techniques including offering memorandum analysis and developing an understanding of common document risk assignment terms
  • Financial statement due diligence
  • 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

Click here to purchase a copy of the book.

Book Media

Also available by Jason Scharfman:

Hedge Fund Governance: Evaluating Oversight, Independence, and Conflicts

Hedge Fund Operational Due Diligence: Understanding the Risks