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
- FactRight Takes Salt Lake Cityby Kate@FactRight.com (Kate Stephany) on September 7, 2023 at 5:11 pm
*Olympic Trumpet flair*
- Navigating the Cap Rate Landscape: How Real Estate Cap Rates Relate to Real Interest Ratesby Jeff.B@factright.com (Jeff Baumgartner) on August 9, 2023 at 6:02 pm
With limited success for centuries, astronomers charted the stars with hopes of better understanding the universe until one day when Copernicus suggested that the earth was orbiting the sun. Once his epiphany was fully understood, empires could navigate the globe with unprecedented precision by knowing exactly where they were by looking up at the stars. Today, there is no shortage of cap rate/interest rate correlation theories in our industry. Perhaps more fully understanding commercial real estate cap rates and their orientation to interest rates can aid alternative investors in navigating the horizon of real estate investment opportunities.
- FINRA Regulatory Notice 23-08: Building on Regulatory Notice 10-22 to Develop More Robust Due Diligence of Private Placement Offeringsby firstname.lastname@example.org (Jacob Heidkamp) on June 28, 2023 at 6:26 pm
FINRA recently released Regulatory Notice 23-08, which provides a reminder to FINRA members of their reasonable investigation obligations when selling private placement investments to their clients under Regulation D. The Regulatory Notice marks FINRA’s first substantial discussion of due diligence related to private offerings since Regulatory Notice 10-22, which was released in April 2010, and forms a crucial part of the foundation of broker-dealer due diligence practices in satisfying their reasonable investigation requirements for offering private placement investment opportunities for their clients. While Regulatory Notice 23-08 does not create new legal or regulatory requirements or new interpretations of existing regulations, the notice does identify areas for consideration and focus for FINRA members in establishing new or modifying existing practices, based on certain observations and examples that FINRA has included in the Regulatory Notice 23-08. In this blog, we will explore some of these areas of focus and some practical steps broker-dealers can take to enhance their due diligence practices based on areas identified in Regulatory Notice 23-08.
- Not All Units Are Created Equal in Broker-Dealer and RIA-Distributed Investment Programsby email@example.com (Gail Schneck) on June 13, 2023 at 3:44 pm
This blog looks at what unit pricing in an investment program offering means to your investors and how to determine whether such pricing treats all investors “fairly.”
- Highlights from FactRight's 2023 RIA Spring Due Diligence Conferenceby firstname.lastname@example.org (Sarah Thommes) on March 23, 2023 at 4:42 pm
We say this every conference, but we are so beyond grateful to all of you for making this Spring RIA Due Diligence Conference in beautiful Scottsdale, Arizona such a success! With over 350 total attendees, the FactRight staff cannot be more appreciative of your continued support and participation.