The SBAI’s Alternative Investments Standards provide a framework that facilitates both the robustness of your business and an efficient investor due diligence process. The Standards have been developed in consultation with both allocators and investment managers.
Whilst the Standards are available for public use from the SBAI website, only SBAI Signatories will receive an official kitemark confirming to investors that they are in conformity with these standards.
|Investment Due Diligence
Investment Due Diligence is typically the start of the investor due diligence process. The Alternative Investment Standards will assist asset managers in preparing for this due diligence touching on items such as investment policies, performance measurement and disclosure of derivative positions.
|Operational Due Diligence
Operational Due Diligence can be one of the toughest parts of investor due diligence for small and emerging managers. Whilst there is an understanding of proportionality (for example, considering size) there is still an expectation of robust governance, procedures, and controls. The Alternative Investment Standards cover a vast spectrum of governance topics including valuation, operational risk, outsourcing, fund governance and shareholder conduct.
Risk management processes and controls are a vital part of the investor due diligence process and the proper functioning of an asset manager. The Alternative Investment Standards cover portfolio risk, liquidity risk, counterparty risk and market risk. The standards also cover the governance and disclosure of a Risk Framework.