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A Digital Transformation for Due Diligence

 

Castle Hall believes that the due diligence is long overdue for a fintech makeover. As due diligence has transformed to become a more structured discipline, more investors - conducting more diligence on more asset managers, more frequently - has created an inherently duplicative process.

DiligenceExchange ("DXC") functions as an industry utility where managers and investors use the same data framework to share core information, needed as part of every due diligence review, in a standard format.

For investors, DiligenceExchange provides consistent, independently verified due diligence, available for every manager and fund in a portfolio. For investment managers, Castle Hall saves time by enabling the manager to work with our diligence team on behalf of multiple investors.

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Asset Managers join DiligenceExchange and prepare a detailed, independently verified DiligenceExchange Transparency Report. 100% free for investors and investment managers.
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Investors may upgrade to a DiligenceExchange Premium account, which gives allocators instant access to our full library of more than 1,000 DXC reports, fund and portfolio level risk analytics, and access to our industry peer group DiligenceExchange Benchmarks.
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Everyone saves time and money!
Contact us to learn more about Castle Hall's DiligenceExchange

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DiligenceExchange Transparency Reports

Asset Managers who join DiligenceExchange work with Castle Hall to prepare a DiligenceExchange Transparency Report. Each report presents key data points across the investment manager, the fund and the manager's control environment in a standard format, comparable across all funds and accounts.

Importantly, DiligenceExchange is not simply a basic web DDQ platform which only transfers manager supplied information to investors. Castle Hall conducts our own due diligence work, including "trust but verify" anti-fraud checks such as service provider verifications. This means that data included in each DXC Transparency Report has been externally validated.

For asset managers, DiligenceExchange brings overdue efficiency to the due diligence process, delivering a consistent, verified diligence package to investors. For investors, DiligenceExchange Transparency Reports enable in house teams to move up the value chain to focus on high value questions which impact the investment decision - not core data gathering and verifications.

And the best part - DiligenceExchange Transparency Reports are free of charge to both investors and asset managers.

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DiligenceExchange Premium

DiligenceExchange Premium gives investors access to Castle Hall’s DXC library of diligence reports on more than 1,500 funds, which is the industry’s largest due diligence database. Content includes both data submitted by asset managers who elect to prepare DXC Transparency Reports, as well as data gathered as part of our broader diligence coverage. Castle Hall works on behalf of more than 150 global investors, reviewing the industry’s premier asset managers each month. 

DiligenceExchange Premium subscribers can also request new DXC reports on any other manager and fund, ensuring that Premium subscribers have 100% coverage across all their investments.

DiligenceExchange Analytics

DiligenceExchange Premium reports add valuable analytics to the core DXC data set.

  • At a fund level, each DXC premium report identifies risk factors across 200 flags – such as a rapid increase in assets under management, a change in administrator, or a high allocation to Level 3 securities
  • At a portfolio level, DiligenceExchange Analytics allow investors to see the aggregate operational risk profile of their portfolio. Across all invested funds, how many have a qualified audit opinion? How many managers fail to disclose details of the management company’s ownership structure?

  • Castle Hall’s most important value add are our DiligenceExchange Benchmarks, which present information as to the percentage of asset managers in our entire coverage universe which display particular risk characteristics. DXC Benchmarks bring long overdue transparency, enabling evidenced, data driven decision making
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Why Castle Hall?

  • Castle Hall is 100% investor / LP funded, and does not accept revenues from the investment managers on the "sell side". This model ensures that DiligenceExchange is not compromised by the inherent conflict of interests created by manager pays due diligence.

  • Castle Hall is not an investment advisor, a fund manager, or a consultant. We do not have a buy list or recommended funds: we act solely to help investors satisfy the governance, risk and compliance obligations of their due diligence programs.
  • Castle Hall can perform due diligence on any manager, strategy or fund structure, worldwide. We do not limit our work to a recommended list, meaning that any manager can join DiligenceExchange and benefit from better diligence co-ordination.

  • Castle Hall can provide feedback to managers following diligence as to best practice and industry trends. We greatly appreciate the time every manager invests in the due diligence process, and both managers and investors benefit from transparent communication of diligence standards.