Analysis of Fund Operations and Future Trends

Abstract

This chapter provides an overview of the process by which investors analyze fund operations through the operational due diligence process and future alternative investment manager operations trends. It begins with a discussion of the importance of the operational due diligence process for alternative investment fund managers in securing investor capital. We then discuss which individuals and groups typically perform operational due diligence. Next, we proceed to discuss the operational due diligence process including document collection and analysis, on-site manager meetings, service provider confirmation and review and, finally, report generation and recommendations. Finally, we discuss future operations trends including the continued increasing complexity of fund operations and a likely focus on data privacy and security among both fund managers and their service providers.