CHAPTER 2

Importance of Operational Due Diligence for Private Equity Funds

In most disciplines related to the concept of investing, there is little argument as to both the scope of the fields covered by the particular discipline and whether any particular field can be justified in the first place. Analyzed in a straightforward manner, the discipline of investment due diligence in private equity would generally be agreed to be broadly related to selecting, analyzing, and funding private equity funds. Furthermore, in order to invest in private equity it would certainly seem justified that there be a discipline dedicated to this exercise. Another less obvious example would be the discipline of risk management. Even outside the world of private equity, risk management is a well-established field in asset management t....