Institutional Investors

Survey says investors give more veto clout to ODD teams


There has been a fundamental shift in the depth and nature of due diligence carried out by hedge fund investors, according to research by Deutsche Bank.

The firm surveyed senior professionals at leading funds of funds and consultants in Europe, representing over $411 billion in hedge fund assets under management, and found that operational due diligence teams are now viewed as a partner and peer to investment teams and are actively vetoing investments.

The level of sophistication institutional investors apply to operational due diligence has increased significantly as they demand greater transparency from managers. The role of operational