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
Ensure the security of your recommendations with decisive background checks in our due diligence reports, or contact us for custom background checks
Due Diligence Reporting
Recent Blogs from FactRight
- Happy Holidays from FactRight!by russell@factright.com (Russell Putnam) on December 23, 2021 at 5:22 pm
In the spirit of the holiday season, FactRight is proud to support the local non-profit Feed My Starving Children, which strives to eliminate starvation in children throughout the world. From March 1, 2020, to February 28, 2021, volunteers have helped the organization pack 267 million meals to meet needs throughout the world, throughout COVID. In December, FactRight partnered with other volunteers at FMSC’s facility in Chanhassen, Minnesota, to pack enough food to feed 49 children for an entire year and made a donation to FMSC on behalf of our clients.
- How Fed Policy Is Distorting Asset Prices and Alternative Investmentsby Jeff.B@factright.com (Jeff Baumgartner) on December 2, 2021 at 6:49 pm
The Federal Reserve is sitting on a massively bloated balance sheet, and all major asset markets—stocks, bonds, alternative offerings, and real estate—are long overdue for a massive correction. That was the thinking of many in early 2020, when the size of the Federal Reserve’s balance sheet stood at $4.3 trillion. Prior to the financial crisis of 2008, its balance sheet never breached the $1 trillion mark. But over a decade after the crisis began, the Fed’s balance sheet has been nowhere near pre-crisis levels. Then, on March 9th, 2020, all three major stock indices recorded historically large percentage losses as investors digested the news that COVID-19 illnesses were surging around the globe. The news led to even more government intervention. Today the Fed’s balance sheet sits at a staggering $8.1 trillion and yet many indices are near all-time highs. So, does the size of the Fed’s balance sheet really matter, and what is the Fed’s balance sheet anyway?
- Top Five Ways to Gain an Edge in DST Due Diligenceby brandon@factright.com (Brandon Raatikka) on November 10, 2021 at 6:51 pm
If you seek to provide your clients with DST investment opportunities, I don’t have to tell you how much of a challenge it can be to identify and properly assess a program before it is fully reserved.
- Highlights from FactRight's 7th Annual* Fall Due Diligence Conferenceby Kate@FactRight.com (Kate Stephany) on September 22, 2021 at 7:22 pm
*Technically, it's been eight years since our first fall conference on September 28th, 2014, but due to the monotony that was daily life in 2020, and that we didn't have a fall conference that year, and my brain thinks 2019 was last year. Oh, not you? Just me? Well then.
- Evaluating Alternative Investments - Is Chasing Yield Really Worth It?by gail@factright.com (Gail Schneck) on August 25, 2021 at 4:59 pm
In today’s low interest rate environment, the search for yield is driving an increasing number of investment decisions. However, higher yield options are somewhat limited in more liquid investments, such as rated bonds or stabilized stocks or mutual funds, causing investors to seek out other avenues to achieve their income goals. Alternative investments are increasingly filling this need in today’s portfolio construction. However, such products are often selected based on quoted yield without taking into account the underlying risk-return tradeoff. The alternative investment industry may have lost track of appropriate compensation for the risk investors are assuming since stated yield often sells itself.