30 Nov 2022

SBAI Publishes Guidance on Internal Governance - A Roadmap for Asset Managers

Today, the Standards Board for Alternative Investments (SBAI), an active alliance of institutional investors and alternative asset managers, published new guidance for asset managers: Internal Governance – A Roadmap for Asset Managers. The SBAI and its Governance Working Group have previously published other guidance, including Cash Handling and Cyber Security and Conflicts of Interest in Parallel Funds.

Strong internal governance is vital for asset managers and central to institutional investor operational due diligence. The form this governance takes however, will differ depending on the size and maturity of the firm, and the complexity of the products offered.

David Kraut, Managing Director, Legal at Lafayette Square Holding Company, LLC, said: “We believe this SBAI Toolbox memo is a great resource for managers to benchmark their governance processes throughout the lifecycle of their firm.”

This report explores key focus areas for governance within asset managers and suggests the types of structures that should be in place for small, mid-size and larger asset managers.

Alex Williamson, General Counsel at Fiera Capital said: “During Operational Due Diligence, how a firm governs its business and fund operations are a key part of the questions we face. We believe this SBAI Toolbox memo provides asset managers with a great tool to ensure their internal governance is appropriate.”

Governance is at the heart of the SBAI, forming the basis of its Alternative Investment Standards and seen throughout the practical guidance memos in its Toolbox.

The SBAI is an active alliance of over 150 alternative asset managers and over 100 institutional investors dedicated to advancing responsible practice, partnership and knowledge. It advocates for an effective alternative investment ecosystem through robust standards and the exchange of ideas. For more information on the SBAI or to join the SBAI community, please contact [email protected] or visit the website www.sbai.org.


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