Castle Hall Launches DiligenceExchange and Introduces DiligenceExchange Benchmarks, Powered by the Industry's Largest Due Diligence Database
Apr 20, 2022 2:46:51 PM
Castle Hall, the Due Diligence Company, is proud to launch DiligenceExchange, delivering a new level of industry intelligence for institutional investors. DiligenceExchange (DXC) contains due diligence data on several thousand funds across traditional (stock and bond) and alternative strategies (hedge funds, private equity, venture capital, real estate, infrastructure and private credit).
Castle Hall's standardized approach to due diligence data collection underpins the entire DXC program. Castle Hall uses a consistent scope and methodology to gather data from each asset manager/GP. The firm then completes independent "trust but verify" checks to protect against fraud.
"DiligenceExchange delivers a powerful combination of efficiency and transparency," said Chris Addy, Castle Hall's CEO. "Working with consistent, verified DXC data, Castle Hall uses proprietary algorithms to identify potential risks triggered for each manager and fund. DXC subscribers can then use the Castle Hall platform to generate a portfolio-wide view of risks, aggregating diligence analytics across their full roster of external managers."
"The real game-changer, however, are DiligenceExchange benchmarks" continued Addy. "DXC subscribers can not only see how frequently a risk arises in their own portfolio but compare that risk to our industry-wide DXC benchmarks."
- How common is it to see key person risk or nepotism?
- How many managers have had a cyber breach?
- How many funds have an expense ratio in excess of 50 basis points?
Anne Coady, Castle Hall's Managing Director, said, "DiligenceExchange solves the current due diligence bottleneck when investors send individual data requests to their managers, either using spreadsheets or an online survey tool. Not only is this process highly inefficient for asset managers - who need to respond repetitively to the same core questions in multiple different ways - it also prohibits the collation of a 'golden master' of industry data.
Castle Hall uses a consistent methodology to gather data on behalf of all our 200 clients. This allows Castle Hall to calculate industry benchmarks based on the collective investing footprint of this large group of investors."
DXC subscribers receive access to all existing DXC reports and can request unlimited further additions to ensure complete coverage of their own portfolios - all for one flat fee. Managers retain control of their information through a "connection" process, whereby existing information is shared with investors via online connection requests.
"Core data collection is simply not the highest and best use of time for in-house professionals," said Addy. "Castle Hall clients use DiligenceExchange to move up the diligence value chain to focus on identified issues, not baseline data gathering."