DiligenceExchange

Castle Hall believes that due diligence is long overdue for a fintech makeover.

Every investor has higher value questions, specific to their organization, which influence their investment decision. But core diligence questions - the manager / GP's corporate structure, systems used, the compliance officer’s bio - are the same for all allocators. Multiple investors asking for the same information, but in slightly different ways, simply adds expense and delays the investment process for all sides.

DiligenceExchange ("DXC") enables managers and investors to use the same framework to share core reference data, needed as the “first 50%” of every due diligence review, in a standard format.

For investors, DiligenceExchange provides consistent, independently verified due diligence, available for every manager and fund in a portfolio. For investment managers, Castle Hall saves time by enabling the manager to work with our diligence team on behalf of multiple investors.

DiligenceExchange Transparency Reports

Asset Managers who join DiligenceExchange work with Castle Hall to prepare a DiligenceExchange Transparency Report. Each report presents key data points across the investment manager, the fund and the manager's control environment in a standard format, comparable across all funds and accounts.

Importantly, DiligenceExchange is not just a web DDQ platform which simply transfers manager supplied information to investors. Castle Hall conducts our own due diligence work, including "trust but verify" anti-fraud checks such as service provider verifications. This means that data included in each DXC Transparency Report has been externally validated.

For asset managers, DiligenceExchange brings overdue efficiency to the due diligence process, delivering a consistent, verified diligence package to investors. For investors, DiligenceExchange Transparency Reports enable in house teams to move up the value chain to focus on high value questions which impact the investment decision - not core data gathering and verifications.

And the best part - DiligenceExchange Transparency Reports are free of charge to investors.

DiligenceExchange Premium

DiligenceExchange Premium gives investors access to Castle Hall’s DXC library of diligence reports on more than 2,000 funds, which is the industry’s largest due diligence database. Content includes both data submitted by asset managers who elect to prepare DXC Transparency Reports, as well as data gathered as part of our broader diligence coverage. Castle Hall works on behalf of more than 150 global investors, meaning our diligence footprint includes reviews of hundreds of the industry’s premier asset managers each year.

DiligenceExchange Premium subscribers can also request new DXC reports on any other manager and fund, ensuring that Premium subscribers have 100% coverage across all their investments. DXC is not limited to a typical consultant's existing coverage list.

DiligenceExchange Analytics

DiligenceExchange Premium reports add valuable analytics to the core DXC reference data set.

At a fund level, Castle Hall uses proprietary algorithms to identify risk factors across 200 flags - such as a rapid increase in assets under management, a change in administration, or a high allocation to Level 3 securities.
At a portfolio level, DiligenceExchange Analytics allow investors to see the aggregate operational risk profile of their portfolio. Across all invested funds, how many have a qualified audit opinion? How many managers fail to disclose details of the management company's ownership structure?
Castle Hall's most important value add are our DiligenceExchange Benchmarks, which present information as to the percentage of asset managers in our entire coverage universe which display particular risk characteristics. DXC Benchmarks bring long overdue transparency, enabling evidenced, data driven decision making.

Castle Hall can perform due diligence on any manager, strategy or fund structure, worldwide. We do not limit our work to a recommended list, meaning that any manager can join DiligenceExchange and benefit from better diligence co-ordination.
Castle Hall can provide feedback to managers following diligence as to best practice and industry trends. We greatly appreciate the time every manager invests in the due diligence process, and both managers and investors benefit from transparent communication of diligence standards.

There Is A New Way to Due Diligence

Contact us to learn more about Castle Hall's DiligenceExchange