FTI Consulting (NYSE: FCN), the global business advisory firm dedicated to helping organizations protect and enhance their enterprise value, today announced the introduction of a new due diligence and transparency offering for private investment funds called the FTI Transparency Report(TM). The new product provides managers of private investment vehicles, including hedge funds and private equity funds, with third-party review of their fund management practices from one of the world's leading authorities on financial restructuring and securities fraud. The product is available beginning today for funds with a five-year track record and a minimum of $500 million in assets under management.
The FTI Transparency Report(TM) will provide an objective and independent third-party assessment of the fund's financial status and business practices based on a rigorous due diligence process conducted by FTI professionals from the firm's Forensic Accounting and Transaction Advisory Services practices, along with experts in corporate finance, investigations, and financial communications. The resulting report may be shared with existing and prospective investors, as well as any other parties at the sole discretion of the fund.
"While the vast majority of private investment funds are likely to weather the current chaos in the capital markets over the long-term, the environment for alternative investing has been fundamentally transformed by the global financial crisis of the past eighteen months," said Jack Dunn, President and CEO of FTI Consulting. "The stunning freeze-up of credit markets, the unprecedented incidence of corporate fraud and mismanagement, and the new regulatory regime in Washington have converged to create a perfect storm of scrutiny for these fund managers. As such, they will be required to demonstrate new levels of transparency and responsibility in order to compete for a smaller and more anxious investor base. Given our deep experience advising hedge fund managers and private equity managers on some of their most critical business issues, we believe that FTI is in an ideal position to evaluate the management practices of these funds against industry best practices and in turn help funds shore up confidence in the opportunities they present investors."
The FTI Transparency Report(TM) will be issued upon completion of a comprehensive review and assessment of fund management and operations vis-a-vis industry best practices. The due diligence process will include background checks and interviews with management and key employees; review of operating, reporting and communications protocols; assessment of liquidity, counterparty risks and related party transactions; and consideration of many other factors.
The FTI Transparency Report(TM) will enable fund managers to help differentiate their funds from other investment options by providing investors with immediate access to a material degree of information about their fund, its operations and its principals. For prospective investors in these funds, including institutions, high-net-worth individuals, fund of funds, and family offices, the report will provide information beyond what is available through public channels, such as S.E.C. filings, while streamlining and focusing their own due diligence prior to making an investment decision.
The FTI Transparency Report does not include a review or opinion of investment strategies or investment risk management, nor does it make any recommendation regarding the suitability of the fund as an investment for any particular investor.
For more information about the FTI Transparency Report(TM), prospective clients may contact Jeffrey Amling at (21... or jeffrey.amling@fticonsulting.com, or Melanie Finn at (646) 485-0592 or melanie.finn@fticonsulting.com.
About FTI Consulting
FTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations protect and enhance enterprise value in an increasingly complex legal, regulatory and economic environment. With more than 3,000 employees located in most major business centers in the world, we work closely with clients every day to anticipate, illuminate, and overcome complex business challenges in areas such as investigations, litigation, mergers and acquisitions, regulatory issues, reputation management and restructuring. More information can be found at www.fticonsulting.com.
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