Operational Due Diligence
Over 20 years of experience underwriting operational risk.
Before making investments across our investment strategies, we perform operational due diligence (ODD) to help identify material risks that could arise from the non-investment operations of investments and managers and seek to mitigate the impact where possible.
Key Objectives1
Avoid losses caused by operational errors and fraud
Protect our client's reputation by identifying operational, regulatory, and legal issues
Identify the appropriate structure
Enhance the terms of the deal
Our Dedicated ODD Team
Our ODD team operates independent of our Investment Department and is comprised of Finance and Legal professionals. The ODD Team performs several different reviews, the three primary being:
Ongoing Monitoring
General Monitoring
Every approved investment is subject to general ongoing monitoring procedures from both an investment and operational perspective.
Specific Monitoring
Addresses specific issues identified during initial or ongoing due diligence.
ODD Watch List
Certain key change events cause an investment or manager to be added to the “ODD watch list” for enhanced monitoring.
Focus on Cybersecurity
As part of our evaluation both pre- and post-investment, we look at cybersecurity risks and preparedness. In a two-part series, we discuss some of the key prevention measures we look for and highlight best practices in readiness and mitigation.
Related News and Insights
1 Due diligence seeks to mitigate but cannot eliminate risk.
Certain investments made directly, not through a third-party investment manager, may not be subject to Operational Due Diligence or require Operations Committee approval.