Since 2007, Castle Hall has worked with institutional investors, fund of funds, family offices and endowments and foundations worldwide to conduct operational due diligence on their behalf.
OpsDiligence® offers a comprehensive suite of diligence tools, across 7 steps. With Castle Hall, investors can conduct consistent, evidenced and auditable due diligence across all external asset manager relationships - irrespective of asset class.
Powered by DiligenceHub, our award winning online diligence platform, OpsDiligence® allows in house diligence staff to move up the value chain. Using Castle Hall to gather core diligence data, internal staff can provide oversight, focus on exceptions, and engage with managers in higher quality discussions.
Form ADV Analysis
Public Record Review
The Form ADV is a key regulatory document. Many investment managers submit their annual ADV update at the same time of the year as their financial statements, creating a resourcing and bandwidth challenge for investors in their diligence process.
Castle Hall's tech team has developed proprietary software to "capture" ADV data, recording information on more than 50,000 fund entities.
DiligenceExpress offers the industry comprehensive, unlimited ADV analysis, including automated change reports - all free of charge.
The starting point of due diligence is a review of public records - regulatory filings, legal and watchlist databases, and media - from flagship newspapers to social media posts.
Put simply, if a manager is "in the news" and an investor is not aware of publicly available information, then the investor's process may be found to be deficient.
Reputational Diligence offers investors a cost effective, RegTech solution, with three components:
Leveraging DiligenceExpress, Reputational Diligence adds proprietary analytical factors to the core ADV data. Castle Hall flags factors such as a short track record, small headcount, existence of disciplinary disclosures, or existence of a related party broker dealer. Each RDD review enables the ADV to become a source of actionable due diligence insights.
Castle Hall integrates the Exiger DDIQ platform into each Reputational Diligence engagement. DDIQ is an automated due diligence solution based on a cognitive computing platform that accesses thousands of sources. Inputs include open and deep web sources, corporate registration records and compliance databases.
Reputational Diligence enables investors to conduct initial and ongoing reputational due diligence across:
Importantly, Castle Hall reviews all results and curates content prior to inclusion in each Reputational Diligence report.
Reputational Diligence can be actioned:
Castle Hall also partners with Exiger to perform full scope background investigations on both management companies and individual fund executives. Exiger background checks, fully integrated into the Castle Hall platform, can be conducted on an initial or update basis.
Reputational Diligence includes curated, real time media monitoring. Castle Hall leverages the power of Dow Jones Factiva to create a fully institutional media monitoring tool. Factiva accesses more than 30,000 premium sources, including licensed publications, websites and blogs, supported by Castle Hall's own review of industry publications and media sources.
Curated news, not unfiltered feeds.
Critically, we carefully curate news feeds to remove the false positives and duplicates that clog standard internet searches. Clients then use DiligenceHub to access curated content via the Dow Jones Factiva portal, meaning that all media information is permanently archived and fully licensed from the content provider with no copyright infringement.
User preferences allow either daily or weekly email summaries to be sent to every member of the investment, ODD, risk and compliance teams.
The annual financial statement audit is one of the most important diligence resources available to asset owners. However, the process to review incoming financial statements, especially for large portfolios, is time consuming.
Castle Hall's financial statement process leverages DiligenceHub, our online due diligence app. DiligenceHub moves AFS analysis beyond the traditional spreadsheet, enabling review of detailed fund level data - and portfolio wide analytics.
Castle Hall inputs key income statement, balance sheet, portfolio and footnote data into DiligenceHub (with comparatives). Then, we use 50 analytics factors to analyze the financial reporting profile of each fund in the portfolio.
Identify funds with an increasing percentage of level 3 assets, with an expense ratio over 50 basis points, and review subsequent events and contingencies footnote disclosures.
All at the touch of a button.
The starting point for ODD is, of course, "Trust but Verify".
As a baseline for every manager and fund diligence review, OpsVerification provides a cost effective, anti-fraud check.
ODD used to be about the "report", prepared when a new manager was onboarded, and then potentially refreshed every 2-3 years. This legacy approach to ODD has now been superceded by active, ongoing manager monitoring.
OpsMonitor offers investors a consistent, auditable monitoring platform, capturing changes at the manager and fund level intra year.
OpsReview is Castle Hall’s flagship onsite due diligence process, delivering a comprehensive diligence assessment of each manager and fund. OpsReview provides detailed due diligence coverage for material manager allocations, higher risk managers and more complex asset classes.
Due diligence is no longer "just" about ODD. Leveraging our decade plus experience and the DiligenceHub tech platform, Castle Hall helps our clients expand their oversight of external managers beyond traditional operational metrics.
CyberSecurityDiligence - expanded due diligence as asset manager cybersecurity policies and procedures.
ESGDiligence - considering ESG risks at the management company and strategy level.
RiskDiligence - review of risk management procedures and analysis of risk controls.
Total Diligence provides enriched oversight across each manager and fund in a portfolio.