06 May 2020

Conflicts of Interest in Parallel Funds

When running parallel funds there are conflicts of interest that will arise that need to be managed and mitigated appropriately. Our Alternative Investment Standards were updated in 2015 to account for these and this memo looks at how the Standards address these issues.

In addition, the memo provides examples of additional measures that asset managers can take to strengthen their management of these conflicts in areas such as trade allocation, compliance, and fund governing body oversight.

It also provides investors with a list of questions that can be used to assess these controls during the due diligence process.