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
The Importance of Ongoing Due Diligence for RIAs
by email@example.com (Scott Smith) on June 22, 2017 at 7:47 pm
It is more important than ever that advisors engage in ongoing due diligence on the alternative investments they recommend to clients. Changes happen quickly and factors that may not affect the equity markets can greatly affect some alternatives.&nbs […]
Alternative Investment Due Diligence: Beyond the Numbers
by firstname.lastname@example.org (Scott Smith) on June 8, 2017 at 10:11 pm
Checking out “just the numbers,” isn’t an option for financial advisors recommending alternative investments to clients. If advisors don’t go beyond the numbers in due diligence investigations, they could be doing a catastrophic disservice to their clients and themselves. […]
Top 7 Alternative Investment Due Diligence Considerations
by email@example.com (Scott Smith) on June 7, 2017 at 5:10 pm
Advisors recommending alternative investments to higher-wealth clients are thinking outside the box about how to generate higher returns. While some alternatives certainly can, and do generate better returns than are available in the equity markets, they are not without risk or other limitations. A prudent advisor should leverage third-party due diligence resources before determining whether the investment is a good match for an individual client.&nbs […]
Understanding and Improving Your Risk Management Process
by firstname.lastname@example.org (Scott Smith) on June 6, 2017 at 10:24 pm
Risk management shouldn’t be an afterthought in portfolio management. While talking about it with clients and formalizing a strategy isn’t as exciting as exploring growth potential, it’s one of those necessary conversations that advisors and clients need to have. Having a clear understanding of a client’s risk tolerance and how to manage it will make your relationship stronger and keep your sterling reputation intact.&nbs […]
The Corporate Ethical Culture: Its Place in a Due Diligence Review
by email@example.com (Scott Smith) on May 23, 2017 at 10:03 pm
Most advisors agree that an issuer’s or investment sponsor’s ethics are becoming more and more important to investors. Surveys show that among younger investors, especially Millennials, whether a company operates in an ethical and socially-conscious environment and makes ethics an across-the-board priority is a highly important factor in their investment decisions. […]
How to Maintain Compliance as a Dually Registered Advisor
by firstname.lastname@example.org (Scott Smith) on April 21, 2017 at 2:50 pm
Dual registration among securities firms is the fastest growing sector in the industry. Yet, many dually-registered advisors — who are registered with both brokerdealers and investment advisors — find it challenging to navigate the changing regulations and ethical rules that apply to their new roles. […]
How Due Diligence Reports are Changing with the Market
by email@example.com (Scott Smith) on April 11, 2017 at 8:06 pm
The concepts of “due diligence” and what comprises a “complete” due diligence report has become more sophisticated over time. However, the purpose of conducting a due diligence review has not changed. That purpose is to help ensure that investment advice honors the “special relationship” a broker dealer has to its client, and that such advice is backed by a reasonable investigation of the securities recommended. Up until recently, broker dealers used due diligence reports to determine whether the investment program under review was suitable for at least some investors. Increasingly, due diligence will help broker dealers and advisors meet a higher standard. […]
How to Leverage Real Estate Market Analysis in Due Diligence
by firstname.lastname@example.org (Scott Smith) on April 6, 2017 at 9:15 pm
A complete real estate market analysis should be part of the due diligence process for any alternative investment involving real estate. In fact, it is more important than ever to consider environmental, social and macroeconomic factors in addition to your other due diligence research. Why? A real estate market analysis complements a thorough financial analysis to present the client with a holistic picture of the fluid environment in which the client is investing.&nbs […]