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How to Perform Due Diligence When Investing in Crypto Funds

How to Perform Due Diligence When Investing in Crypto Funds

Episode 4 Published 3 years, 4 months ago
Description

Do you have a questions about starting a hedge fund, venture capital fund or other form of alternative investment vehicle? Is there a topic your'e interested in learning about? Drop a comment or reach out - mike@altfunds.io. We connect alternative Investment managers to industry leading service providers.

 

Website: https://altfunds.io/

Youtube Channel: https://www.youtube.com/@AltFundsInvestmentPodcast

Spotify: https://open.spotify.com/show/5hmRIlxXPlw5xi7sTp1g0r?si=602097c618884dde

Linkedin: https://www.linkedin.com/company/alt-funds-investment-podcast/

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Connect with Quentin and perfORM Due Diligence Services Limited

Website: https://www.performdd.com/

Telegram: @qreplicantsaint

Email: Quentin.Thom@performdd.com

LinkedIn: https://www.linkedin.com/company/performdd/

 

This episode features Quentin Thom of Perform Due Diligence. Perform Due Diligence provides operational due diligence for hedge funds, investors, service providers and more:

- What considerations do investors have when they're considering investing in a hedge fund?

- What should crypto funds be thinking about when onboarding limited partners (LP's).

- Limited partners (LP's) investing in crypto funds.

- How to start a hedge fund the proper way.

- Custody of digital assets.

- Investing in crypto funds.

 

Timestamps:

00:00 Intro

00:41 Quentin Thom's background and the story of Perform Due Diligence (performDD)

5:02 What services does Perform Due Diligence Offer

12:00 Perform Due Diligence offering for Investment Managers

16:09 When should a fund manager be thinking about due diligence services. What size should a hedge fund be for due diligence services. What size should a venture capital fund be thinking about due diligence services.

19:01 Consideration for Investment Managers when hiring third party service providers

22:40 A walk through of the due diligence project for a hedge fund.

26:42 Due diligence process for a crypto fund. What investors care about when investing in a crypto fund.

31:42 Advice for a new fund manager when it comes to investor due diligence

34:28 Where to go to connect with Quentin Thom and Perform Due Diligence.

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Due diligence is a critical part of investing in alternative investment funds, as these types of funds can be complex and carry higher levels of risk compared to traditional investments. Here are some steps that an investor can take to do their due diligence:

1. Research the fund and its management team: Investors should research the fund's history, investment strategy, track record, and the experience and qualifications of the fund's management team. This can help to assess the likelihood of the fund achieving its investment objectives.

2. Review the fund's documents: Investors should carefully review the fund's offering documents, such as the private placement memorandum, subscription agreement, and operating agreement, to understand the fund's investment strategy, risks, fees, and liquidity terms.

3. Assess the fund's portfolio and performance: Investors should examine the fund's portfolio to understand the types of investments it holds and their potential risks and returns. They should also review the fund's historical performance, including its returns and volatility, to determine its suitability for their investment objectives.

4. Evaluate the fund's structure and governance: Investors should understand the fund's structure and governance, including the roles and responsibilities of the fund's management team, board of directors, and service providers. This can help to assess the transparency and accountability of the fund.

5. Consider the fund's regulatory environment: Investors should consider the regulatory environment in which the

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