Targeted. Tailored. Experienced.
FR Risk Management is an investment consulting service that provides client-focused due diligence, alternative investment product recommendations, educational tools, and quarterly updates. Using our proprietary risk analysis techniques, we prepare investment committee reports and risk disclosure forms to guide asset allocation decisions in the alternative investment industry.
FR Risk Management’s experts help clients identify their risk profile and then suggest alternative investments that align with that profile. We also act as an industry advocate, discussing concerns with sponsors and, when possible, encouraging changes in product terms. We foster longstanding relationships with both sponsors and financial services clients, providing ongoing due diligence support in the ever-changing market and regulatory environment.
FR Risk Management: How It Works
After signing an engagement letter, we meet to review the firm’s risk profile, current practices, and alternative investment platform and point out if any current products appear inconsistent with the firm’s objectives.
After completing the initial review, FR Risk Management performs due diligence on products that meet the firm’s risk profile and may enhance their alternative investment platform.
Once a firm approves a product, FR Risk Management provides ongoing risk disclosures and analysis on the public non-traded programs to satisfy a client’s regulatory compliance obligations and to monitor fluctuations in product risks. To learn more about FR Risk Management’s custom investment consulting services, contact Gail@FactRight.com.
Recent Blogs from FactRight
Three Ways to Stay Informed on Alternative Investments
by Leah Berend on June 25, 2019 at 8:05 pm
We’re excited to announce the launch of FactRight’s new, enhanced Report Center website!
The Alternative Investment Imperative for RIAs
by Daniel Wildermuth on October 3, 2018 at 7:39 pm
Advisory practices of all types have been growing steadily over the past several decades through applying various practice approaches and structures that emphasize their fiduciary responsibility to act in the best interest of the client. As fiduciaries, most advisors have utilized primarily or even exclusively public market securities such as individual stocks and bonds, mutual funds and exchange traded funds (ETFs) to deliver their professional investment services.
RIAs and Alternative Investments Part 2: Types of Firms
by email@example.com (Scott Smith) on June 26, 2018 at 9:18 pm
As we continue to meet with registered investment advisors that want to enhance client service and grow their assets under management through alternative investments, we pick up more critical insights that will help us deliver the right solutions to this group.
Best Practices for Investment Committees for Alts
by Gail Schneck on June 8, 2018 at 1:56 pm
Through FactRight’s TrueDiligence platform, we help broker dealers and registered investment advisors select best-in-class programs for their alternative investment platforms. We also work with our clients to ensure that they have time-tested processes and procedures in place for when the regulators come knocking. When it comes to processes and procedures, some of the very first questions our clients ask us relate to the role and composition of the investment committee for alternative investments. Let’s tackle some of the most common questions here.
What We’re Learning About RIAs and Alternative Investments
by firstname.lastname@example.org (Scott Smith) on June 1, 2018 at 5:30 pm
For the past couple of weeks, I’ve been on the road with John Paliotta, FactRight’s new vice president of business development. Our goal was to get out in the trenches and meet with registered investment advisors who are actively seeking to incorporate alternative investments into the solution suite they offer to clients and to hear about their experiences and their frustrations. As we hear their stories, it’s clear that RIAs are becoming increasingly savvy about alts. They view alternatives as a key to distinguishing their practices, enhancing the performance of their clients’ portfolios, and growing assets under management in a way that comports with their fiduciary duties. They also recognize their own limitations and the obstacles that stand in the way of full integration of alternatives into their platforms.
An Unfortunate Reminder of the Importance of Sponsor Succession Plans
by Kate@FactRight.com (Kate Stephany) on April 19, 2018 at 7:03 pm
Earlier this week, Preferred Apartment Communities, Inc. (PAC), a notable issuer in the alternative securities industry, unexpectedly lost its founder, chief executive officer, and chairman John Williams. Mr. Williams was known to many in the business, although his influence extended far outside the industry. In FactRight’s interactions with him, we found Mr. Williams to be engaging and courteous, consistent with his high reputation.
The Masters: A Customer Experience Unlike Any Other
by email@example.com (Scott Smith) on April 10, 2018 at 5:37 pm
Golf fans around the world spent last Sunday afternoon glued to their TVs to watch the best golfers in the world vie for the sacred green jacket. The green jacket is awarded by Augusta National Golf Club each year to winner of its Masters Tournament. On Sunday, hard-charging Jordan Spieth (who nearly tied the course record), the always-stylish Rickie Fowler, and Patrick Reed, who held on to claim his first green jacket, provided the perennial Sunday drama.
Can Third Party Evolve Into Your Party?
by firstname.lastname@example.org (Scott Smith) on October 3, 2017 at 5:30 pm
Third party due diligence has evolved into a critical component in the distribution of alternative investments over the past decade. Prior to the Great Recession, third party reports were helpful in the review of products, but the regulatory examiners had yet to require these reports in the every selling firms’ file. The diligence done internally by many of the firms in those days was sufficient to satisfy its obligations to the extent the regulators were enforcing them. Today, good luck finding any regulatory examiner who doesn’t first ask for a third party report when reviewing diligence files. Third party reports are all but mandatory today in any regulatory audit.
What Krueger v. Ameriprise Means for Investment Platforms
by email@example.com (Russell Putnam) on September 29, 2017 at 2:12 pm
We’re still talking here at FactRight about Professor Mercer Bullard’s presentation about the DOL Fiduciary Rule at our due diligence conference a couple weeks ago. Professor Bullard thoughtfully explored what provisions of the impartial conduct standards broker dealers ought to pay particular attention to, and over which ones fears are overblown.
How to Read a Financial Statement [VIDEO]
by firstname.lastname@example.org (Chari Graham) on September 22, 2017 at 1:21 pm
In this video, FactRight’s Chari Graham takes you through performing a financial statement analysis.