Documenting and Analyzing Fund Operations

Abstract

This chapter analyzes important considerations relating to documenting alternative investment fund operations. It begins by outlining the three primary purposes of operations documentation. Next, the role of operations documentation in meeting minimum regulatory requirements is covered. We then discuss the demonstrative and memorialization purposes of operational documentation as well as the change management function of operational documentation. The chapter continues with an overview of the purposes and roles of investor facing documentation. As part of this conversation, we outline the historical role of operations manuals and their transition to topic-specific operating policies. Finally, we discuss the preparation of alternative investment fund manager operational due diligence questionnaires and provide an overview of key areas that should be covered in these DDQs.