A third-party due diligence review of your business is a necessary step to building the trust and relationships that grow your product distribution network. After reviewing hundreds of new sponsors, we know it also represents a significant investment of your time and resources.
That’s why a FactRight sponsor review is designed to support sponsors new to the alternative investment space. Working with FactRight will help make the review process smoother and more efficient by:
- Fulfilling your retail distribution channel’s expectations of third-party due diligence
- Providing insight and advice on how reputable sponsors position themselves
- Increasing confidence—both internally and externally—that you are ready to launch your capital-raising campaign
Here’s how we recommend you prepare for a sponsor due diligence review.
Expect the Due Diligence Process to Take Some Time.
With your cooperation, a sponsor-level review typically lasts 8 to 10 weeks from when you receive our request for information (RFI) until our draft report is finished and ready for your factual review.
Can it go faster (or slower)?
The length of your review depends on your responsiveness to requests and inquiries. Our review process represents comprehensive due diligence on all critical functions of your firm. Many documents are needed to ground that review, and a thorough analysis takes time. New sponsors are often unprepared for the breadth of FactRight’s RFI, and as a result, the review process can get bogged down as a sponsor scrambles to find or produce documents that were otherwise unavailable. Sponsors that are not ready or are unresponsive to information requests can experience up to double the review time.
Prepare Your Documents for Review.
Attached is a Sponsor Due Diligence Readiness Documents List that a sponsor organization should be able to provide when it engages FactRight for a review. In our experience a sponsor typically needs 2 to 3 weeks to fulfill this RFI.
Please keep in mind that this list is more than just a head start to fulfilling our RFI. These documents represent the hallmarks of a firm that is ready to raise capital in the retail channel and thus is ready for a due diligence review.
Our Documents Are Ready. What’s Next?
Once we receive the requested information, we’ll move on to the next stages of the process: (1) reviewing the documentation, (2) making an onsite visit to your office, and (3) drafting the report of our findings. We will communicate with you every step of the way so that you’ll always know how the due diligence process is progressing.
If you have any questions about this process or about other aspects of FactRight’s due diligence services contact the FactRight Team