Description

PRISM LLC either acts as an extension of each client's in-house staff, or PRISM LLC provides completely outsourced operational due diligence services. Under a tailored advisory arrangement, the client performs certain due diligence functions in-house, while outsourcing other functions to PRISM LLC or uses PRISM LLC as an outside advisor or oversight function. With outsourced operational due diligence (ODD), the client relies on PRISM's expertise, and receives extensive assurance reports on each hedge fund, including an overall opinion on operational risk and benchmarking in each operational area. Both structures are governed by an advisory relationship under a one year or multi year arrangement. PRISM also assists non advisory clients in their one-off hedge fund due diligence needs. Institutional investors rely on PRISM LLC to conduct operational due diligence on their alternative investments (i.e. hedge funds, private equity funds, and real estate funds). This is done with an end goal in mind of avoiding large scale frauds and Ponzi schemes, and avoiding investments in funds that follow less than efficient business practices (e.g. lack of the maintenance of complete financial records, weak internal controls, inadequate staffing, expense abuse). For additional guidelines on hedge fund operational due diligence, please see PRISM INSIGHTS 2015andPRISM INSIGHTS 2016. The scope of a review is an in depth process that meets the standards of large institutions. For assurance reports, PRISM dedicates over seventy hours to performing site visits, conducting interviews, confirming information with third parties, reviewing legal documents, assessing the internal control structure, conducting due diligence on the hedge fund administrator, and thoroughly understanding the fund and the manager.