Depth. Clarity. Objectivity.
FactRight’s third party due diligence reporting services provide comprehensive, relevant, unbiased review of sponsors and offerings in the alternative investment industry. We put investments like private closed-end 40 Act Funds, non-traded REITs, private equity funds, 1031 exchanges, and debt structures and their sponsors through their paces. We look at asset valuation, prior performance, fee and class structures, exit scenarios, real estate market analysis, and much more to reveal what is significant about the product or sponsor. Our due diligence reports are an essential part of any risk management process.
Pinpointing the nerve center of an investment’s sponsor organization.
The strength of an alternative investment’s sponsor organization is critical to its success. But sponsors can be jigsaw puzzle of regulations, affiliate companies, complex family structures, and legal tangles. We put the pieces together to produce a complete picture of the sponsor. Our reports are based on corporate site visits and in-person interviews of executive management as well as the PPM, tax and legal opinions, quarterly and annual filings, and other documentation.
Each of our sponsor reports includes:
- Meticulous ownership analysis
- Rigorous litigation searches and background checks on key players
- In-depth reviews of operational controls
- Detailed analysis of financial position and operating trends
- Comprehensive review of prior sponsored investment programs
- Detailed risk assessment and risk mitigation information on the sponsor
Let us help you see the big picture like never before. Gain access to our secure Report Center to download our due diligence reports on sponsors, as well as our ongoing series of webinars and white papers on the alternative investment industry.
Illuminating what an alternative investment can bring to an investment portfolio.
Decreased volatility, more active management, and increased diversification are just some of the advantages of alternatives. But their sheer variety can make them seem murky and confusing. Using alternatives effectively requires an informed, in-depth understanding of an investment’s structure and market outlook. Our clear, candid reviews are the most efficient way to determine what role an alternative could play in an overall alternative investment strategy.
Our analysts are experienced in single-asset offerings of $5 million for private real estate offerings, $2 billion interval fund blind pools, and everything in between. Our reports not only illuminate the facts of an investment but also help interpret what they mean.
Our offering reports provide:
- Detailed assessment of an alternative’s strategy, objectives, and target investments
- In-depth discussion of asset management and exit strategy
- Overview of and frank commentary on the investment sponsor
- Vigorous review of key agreements and key players
- Insightful real estate market analysis
- Thoughtful deliberation on an offering’s risks, performance, and unique attributes
Explore our secure Report Center to learn more about how our offering due diligence reports can help construct a best-in-class, truly diversified risk portfolio.
Identifying risks before they become headlines.
Investment risk factors such as an NAV position, leverage, cash flow, and income are never static. Tracking these factors over time is an essential part of maintaining a quality investment platform. The problems that often write down the value of an investment can often be seen long before a default occurs or dividends are cut, if you know where to look.
Keep up with every change that may impair an asset in your alternative investment portfolio using FactRight’s ongoing due diligence services. Our financial experts track multiple metrics for both publically traded and non-traded securities and provide you with sector outlooks and market commentary directly to your inbox.
Our ongoing due diligence includes:
- Annual updates to sponsor reports
- Quarterly updates to offering reports
- Credit quality analysis
- Portfolio asset quality analysis
- Exit scenario evaluation
- Recovery rate trend analysis
- Changes in concentration risks
- Peer comparisons
Keep current on the alternative investment industry by subscribing to our Report Center.
Delivering quick insight into personnel behavior and history.
The stakes of non-compliance are too high to rely on chance. The SEC disqualifies individuals and entities defined as “covered persons” from offering securities in the marketplace, and the presence of an SEC-defined “bad actor” can put an entire investment offering in jeopardy. Our background checks cover all areas described by the SEC’s “bad actor” rules, so you know you’re covered.
Our background searches include these critical sources:
- State criminal and civil records
- Federal criminal and civil records
- The Securities Exchange Commission
- Financial industry records
- Regulatory authority records
- The Commodities Futures Trading Commission
- State securities commissions
- State bank examiners
- The National Credit Union Administration
- Federal banking regulatory agencies
Recent Blogs from FactRight
First Capital Investment Corp. Director Goes Out in Blaze of Glory
by Jacob Mohs on March 19, 2018 at 6:30 pm
Usually when a director resigns from a board of a public company, the company puts out a boilerplate filing saying that the director is not resigning as a result of any disagreements with management. However, in rare cases there are fireworks. Pursuant to Item 5.02 (a) of Form 8-K, a disagreement leading to director resignation generally triggers disclosure obligations. The company is required to, among other things, describe the disagreement and file correspondence related to the resignation as an exhibit to the 8-K. Companies seeking obfuscation often file this info as part of an 8-K with a headline about something else. […]
What to Make of Cash Out Transactions in DSTs
by email@example.com (Brandon Raatikka) on March 14, 2018 at 6:45 pm
A few sponsors we follow have arranged for cash out transactions in DSTs they have recently syndicated in the retail channel, which has turned the cash out concept into a hot topic with our clients. The IPA’s Direct Insights Call on DSTs last month addressed these new structures. So what are we to make of them? Is it even accurate to call these transactions “refinancings,” which is how they are referred to around the industry? […]
Private Placements Explained: Part 5 (Key Risks)
by firstname.lastname@example.org (Russell Putnam) on January 9, 2018 at 9:07 pm
Let’s wrap up our five-post discussion of private placements by exploring some key considerations that often present risks in Reg D programs. […]
Private Placements Explained: Part 4 (Fees and Expenses)
by email@example.com (Russell Putnam) on January 3, 2018 at 4:16 pm
Happy New Year! Last month, we launched a series of blog posts on private securities offerings, which you can read here (Regulation D), here (distribution waterfalls), and here (differences between public and private direct participation programs). Let’s continue our discussion of private placements by exploring typical fees and expenses for private programs. […]
Private Placements Explained: Part 3 (Public vs. Private)
by firstname.lastname@example.org (Russell Putnam) on December 27, 2017 at 10:02 am
Earlier this month, we launched a blog series on private placements, looking at Regulation D itself in Part 1, and distribution waterfalls in Part 2. Let’s continue our discussion of private placements by approaching them from a reference point most of our clients are familiar with, and compare private direct participation programs to their public, non-traded cousins. […]
FactRight 2017 Holiday Due Diligence Report
by email@example.com (Brandon Raatikka) on December 15, 2017 at 6:55 pm
Happy Holidays from FactRight! In appreciation of your support this year, your FactRight 2017 holiday card/due diligence report is here! […]
Private Placements Explained: Part 2 (Waterfalls)
by firstname.lastname@example.org (Russell Putnam) on December 12, 2017 at 6:52 pm
Last week, we looked at exemptions to registration under Regulation D itself in Part 1 of the blog series on private placements. Let’s continue our discussion of private placements by exploring distribution waterfalls in Reg D programs. […]
Private Placements Explained: Part 1 (Reg D)
by email@example.com (Russell Putnam) on December 7, 2017 at 9:55 pm
Over the past year or so, FactRight has seen an increase in the number of private placements in the retail space alternative space as sales of public, non-traded products decline. While many in the industry have a good understanding of the differences public and private investment programs, it is easy to overlook the actual regulation that allows for private placements, Regulation D, and the impact the regulation has on program design. […]
Practice Tips on Reviewing Quarterly Filings
by Jacob Mohs on November 21, 2017 at 7:15 pm
It’s 10-Q review season again, and at FactRight and FR Risk Management, we’re assessing the filings for many public, non-listed investment programs and updating our ongoing reviews for our clients. It’s a good time to share pointers on how to perform efficient and effective due diligence on platform programs through reviews of quarterly filings. […]
Key Conservation Easement Due Diligence
by firstname.lastname@example.org (Russell Putnam) on November 7, 2017 at 7:29 pm
As we move toward the end of the year, you may find yourself reviewing a land syndication that gives investors the option to encumber the property with a conservation easement, which would generate a charitable deduction for federal tax purposes. We thought that a brief primer on conservation easement due diligence may be helpful for our clients during this season. […]