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Castle Hall Publishes Due Diligence Analysis of 2020 Form ADV Filings, Covering $94 Trillion of Assets

May 27, 2020 9:14:32 AM

MONTREAL--(BUSINESS WIRE)--Castle Hall, the Due Diligence Company, published its analysis of Form ADV data filed with the US Securities and Exchange Commission (“SEC”) up to March 31, 2020. Key findings include:

  • Investment managers filing with the SEC report Regulatory Assets Under Management (“RAUM”) of more than $94 trillion.
  • More than 860,000 professionals work for registered and exempt reporting advisers, illustrating the employment footprint of the asset management industry.
  • 57% of Registered Investment Advisers (RIAs) have RAUM of less than $500 million, suggesting that the “average” money manager is relatively modest.
  • Industry assets are heavily concentrated in the largest advisers. The 7% who manage more than $10 billion collectively control over $82 trillion, which is 87% of total RAUM.
  • 11.8% of Registered Investment Advisors have one or more regulatory, criminal or civil judicial filing.

Investors can learn more in Castle Hall’s Form ADV Operational Due Diligence Primer, part of the firm’s DueDiligenceUniversityTM library of diligence education and training resources. The Primer outlines how ADV data can be used to support allocator due diligence when screening potential investments, onboarding new funds and accounts, and monitoring existing asset manager relationships. The Primer can be downloaded from here.

“The ADV is a treasure trove of due diligence information,” said Chris Addy, Castle Hall’s CEO. “Extensive detail around assets under management, headcount, clients, disciplinary disclosures and related party affiliates are just some of the ADV data points which can support the due diligence process.”

Castle Hall’s free DiligenceExpress tool supports investors as they use Form ADV data to evaluate asset managers and private funds. “DiligenceExpress is a completely free service which enables investors, asset managers and industry service providers to review and monitor diligence information on more than 20,000 asset managers and 60,000 private funds”, said Addy. “With a DiligenceExpress account, investors can access Form ADV data optimized for due diligence, receiving automated notifications of new ADV filings, extensive data analytics, and an archive of prior records. With Castle Hall’s sophisticated change view tool, investors can compare any two filings to instantly identify changes as they monitor their managers.”

DiligenceExpress is fully integrated into Castle Hall's broader due diligence workflow. After reviewing manager and private fund ADV information, investors can progress to a reputational due diligence review on the asset manager or key executives, review fund audited financial statements, initiate OpsMonitor coverage, or complete a full OpsReview due diligence report. Investors may also add ESG, cyber security or risk due diligence to that manager or strategy.


About Castle Hall Diligence

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