Investment Due Diligence
When making strategic investment decisions, thorough due diligence is paramount. At DDC – Due Diligence Consulting, we specialize in providing comprehensive investment due diligence services on persons and entities that empower you to make well-informed choices in a complex and competitive market. Our team of seasoned professionals works with each client to delve deep into the background of the potential investment, providing them with the insights they need to mitigate risks and maximize returns.
With DDC’s investment due diligence, you can confidently navigate investment opportunities, minimize risks, and position yourself for long-term success. DDC uses a proprietary, multi-layered approach to research a person or entity everywhere they have a contact or connection, under every name variation, and to the most original source level possible.
DDC assists private equity firms, hedge funds, private foundations, and public and private companies with assessing key risk areas with deal vetting. DDC examines management track records, analyzes business strategies, and locates compliance issues. DDC routinely identifies silent partners, potential conflicts of interest, and undisclosed related-party transactions.
Our Investment Due Diligence Services Include:
Case Study 1
A longstanding client of DDC, a private foundation, engaged DDC to vet a potential private equity investment. The due diligence included operational due diligence and background checks on five partners. DDC’s operational due diligence identified concerns regarding the firm’s handling of sensitive information. During the review, DDC was able to access the names of every limited partner and their respective capital commitments.
In addition, DDC identified issues for three of the five partners, two of whom had worked together for approximately two decades. One partner was named a “key individual” of an entity under investigation by the FBI in a warrant to seize property subject to forfeiture. The FBI’s investigation centered on allegations of money laundering, mail fraud, wire fraud, and healthcare fraud. Another partner was sued by a former employer for millions of dollars and was accused of violating a non-solicitation agreement. The third partner misrepresented his status as a CPA.
Case study 2
A lender engaged DDC to conduct due diligence on the CEO of a private company prior to a loan or other financing arrangement in excess of $100 million. The case presented several research challenges. The CEO had a common name. DDC’s research also indicated that the CEO had used aliases, different addresses, and even different dates of birth to obscure his criminal record and litigation history.
DDC found that the CEO was convicted of bank fraud 20 years ago and had since left a trail of court cases alleging fraud, misrepresentation, and other wrongdoing. DDC’s findings further suggested that the person may have links to organized crime. In addition, the CEO made numerous claims in writing to the lender that were false or unverifiable. Finally, DDC determined that the CEO and his companies did not have the proper licenses and regulatory registrations required for their business.
