Hedge Fund Due Diligence

Capital introductions can be made to successful portfolio managers with assets under management ranging from $1M to several billion dollars. Upon submitting a request for a capital introduction, a in-depth questionnaire will need to be submitted to our investment advisors that contain the following information:

• Size of Fund
• Number of Investors
• Amount Capital Introduction Requested
• Current volume (daily, monthly, yearly averages.)
• Track Record
• Drawdown
• Best year vs. worst year
• Financial Ratios
• Fund Manager Bio
• PPM (Private Placement Memorandum)
• Limited Partnership Agreement
• Strategy: long/short, market neutral, arbitrage, etc.
• Trading Activity/Duration: long-term trading, swing trading, intra-day trading
• Prime Broker
• Fund Accountant
• Fund Administrator
• Legal Counsel
• Other Business/Transactional Relationships
• Other Background Information

After all the above information is collected and reviewed by our team, we will assess whether the portfolio manager is suited for a capital introduction. In some cases, prior to the capital introduction process, the portfolio manager may be required to execute its transactional business with our affiliated companies and undergo an “incubation” period of 3-12 months, in which the portfolio manager’s performance will be evaluated. At the end of a successful “incubation” period, a capital introduction may be made as an investor, via vCap Funds, 3rd party advisors and allocators, or by introducing prospective accredited investors to the portfolio manager.