No investment is without operational risk. The key challenge facing Chief Investment Officers and Investment Committees is to navigate these risks successfully as they build out their investment programmes.
Our initial assessment of the SEC's Private Fund Adviser Rule is that while there is less prohibition and more disclosure, it remains overly prescriptive. While some controversial aspects in the original proposal have been modified, the rule will bring significant changes to the regulation of Private Fund Advisers that may still fail to address the root of governance failures.
Clone investment firm and impersonation fraud is receiving fresh attention as more sophisticated tools are being used to defraud investors, posing significant financial and reputational risk to both investors and managers.
The SBAI Toolbox Guidance on Alternative Credit helps investors understand asset class specific challenges and undertake due diligence of valuation arrangements, fund structures and conflicts of interest.
The failure of Silicon Valley Bank (SVB) is a stark reminder that banks are vulnerable and such events can easily spread and affect other banks. This article reminds institutional investors and investment managers how the risk practices set out in the Alternative Investment Standards can help address deposit/counterparty risk.
In August 2022, the UK Financial Conduct Authority (FCA) issued its Dear CEO letter setting out its Alternatives Supervisory Strategy. This letter touched on several issues that are at the core of our mission here at the SBAI, including risk management, culture and responsible investment.
In this article, we discuss some of the points raised by the FCA and where we can be helpful to firms reviewing their processes and controls following on from this letter.
Diversity metrics are a great tool for institutional allocators to both understand and benchmark the diversity of their portfolios, but over reliance on this type of measurement may mean we are losing track of what we are really trying to measure – promotion of culture diversity within the industry. In this article, we discuss how allocators can look beyond the metrics.
There is much debate in the alternative investment industry about the role of short selling in responsible investment in general and specifically in net zero frameworks. In this thought piece we discuss the importance of short selling in the transition to a low carbon environment and suggest how it should be accounted for in net zero frameworks.