Alt Funds Network How to Perform Due Diligence When Investing in Crypto Funds
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Connect with Quentin and perfORM Due Diligence Services Limited
Website: https://www.performdd.com/
Telegram: @qreplicantsaint
Email: Quentin.Thom@performdd.com
LinkedIn: https://www.linkedin.com/company/performdd/
This episode features Quentin Thom of Perform Due Diligence. Perform Due Diligence provides operational due diligence for hedge funds, investors, service providers and more:
- What considerations do investors have when they're considering investing in a hedge fund?
- What should crypto funds be thinking about when onboarding limited partners (LP's).
- Limited partners (LP's) investing in crypto funds.
- How to start a hedge fund the proper way.
- Custody of digital assets.
- Investing in crypto funds.
Timestamps:
00:00 Intro
00:41 Quentin Thom's background and the story of Perform Due Diligence (performDD)
5:02 What services does Perform Due Diligence Offer
12:00 Perform Due Diligence offering for Investment Managers
16:09 When should a fund manager be thinking about due diligence services. What size should a hedge fund be for due diligence services. What size should a venture capital fund be thinking about due diligence services.
19:01 Consideration for Investment Managers when hiring third party service providers
22:40 A walk through of the due diligence project for a hedge fund.
26:42 Due diligence process for a crypto fund. What investors care about when investing in a crypto fund.
31:42 Advice for a new fund manager when it comes to investor due diligence
34:28 Where to go to connect with Quentin Thom and Perform Due Diligence.
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Due diligence is a critical part of investing in alternative investment funds, as these types of funds can be complex and carry higher levels of risk compared to traditional investments. Here are some steps that an investor can take to do their due diligence:
1. Research the fund and its management team: Investors should research the fund's history, investment strategy, track record, and the experience and qualifications of the fund's management team. This can help to assess the likelihood of the fund achieving its investment objectives.
2. Review the fund's documents: Investors should carefully review the fund's offering documents, such as the private placement memorandum, subscription agreement, and operating agreement, to understand the fund's investment strategy, risks, fees, and liquidity terms.
3. Assess the fund's portfolio and performance: Investors should examine the fund's portfolio to understand the types of investments it holds and their potential risks and returns. They should also review the fund's historical performance, including its returns and volatility, to determine its suitability for their investment objectives.
4. Evaluate the fund's structure and governance: Investors should understand the fund's structure and governance, including the roles and responsibilities of the fund's management team, board of directors, and service providers. This can help to assess the transparency and accountability of the fund.
5. Consider the fund's regulatory environment: Investors should consider the regulatory environment in which the fund operates, including the laws and regulations that govern the fund and its investments. They should also review the fund's compliance record to ensure that it has a history of complying with regulations.
6. Seek professional advice: Finally, investors may want to seek the advice of a financial advisor or attorney to help them navigate the due diligence process and assess the suitability of the fund for their investment goals.
Summary: Overall, due diligence is an important part of the investment process for alternative investment funds, as it helps to ensure that investors understand the risks and rewards of their investments.
Starting a fund? Are you wondering how to start a crypto hedge fund? We can help to connect you to the right hedge fund vendors. We can also help start a venture capital fund, or any form of alternative investment vehicle. We can help you to launch a hedge fund. Digital asset funds may have a more difficult time finding digital asset fund lawyers, digital asset fund auditors, digital asset fund custodians, digital asset fund fund administrators, digital asset fund offshore directors - Alt Funds can help you to find the right services providers.