Due Diligence Associate

Applicants must reside in Illinois or within driving distance of Chicago as this position works 3 days a week in office.

Our client is a global alternatives investment firm with over 40 billion in assets under management in private equity, infrastructure, real estate, credit, absolute return strategies, and multi-asset class opportunistic investments..

They are seeking to hire a Due Diligence Associate to work 3 days a week in their Chicago office

As a member of the Firm’s Operational Due Diligence team, this individual will primarily be responsible for assessing whether an investment is within the parameters of the Firm’s operational due diligence underwriting standards; and monitoring investments on an ongoing basis from an operational risk perspective.

RESPONSIBILITIES

Identify, analyze, and document risks associated with the operations (people, process, and technology) of underlying managers and sponsors across the firm’s investment strategies (i.e., absolute returns, private equity, real estate, infrastructure, alternative credit, etc.).

Evaluate the adequacy and efficacy of the processes and systems used by alternative investment managers to monitor and manage the risks associated with non-investment functions, including finance, compliance, and information technology, among others.

Develop, implement, and execute ongoing risk mitigation plans that enable the firm to monitor and manage the risks associated with its investments.

Work closely with the firm’s investment team, in a “deal team” construct to collectively evaluate the merits of the investment.

Evaluate the appropriateness of the legal structure and terms of investment vehicles; corroborate that the terms are in alignment with practice through interviews with investment managers.

Collaborate with the firms internal and external legal counsel to negotiate pertinent legal terms.

Provide excellent and timely client service to the Firm’s clients and internal stakeholders, including investments, business development, finance, among others.

Design, participate in, and document results of interviews of senior personnel at underlying managers, administrators, audit firms and other fund service providers, including on-site fieldwork at underlying investment managers.

Document results of interviews, including risks identified, and make written recommendations to the Operational Due Diligence group and Operations Committee.

Review and analyze financial statements, regulatory correspondence, manager materials, and other relevant documentation as part of operational due diligence reviews of underlying managers and document findings.

Review and analyze background investigation reports received from third-party private investigation firms and document findings and the firm’s action plan.

Prepare and review fund governing document abstracts for underlying fund governing documents, including a review of underlying fund liquidity and expense provisions.

Read current periodicals to identify current hedge fund and private equity fund frauds, failures or regulatory proceedings and perform ‘root cause’ analysis.

Review the timeliness and accuracy of investment performance and valuations as reported by the investment manager, while staying abreast of current developments affecting the investment manager’s personnel, infrastructure, operations, and third-party service providers.

Review and monitor various hedge fund manager communications, including investor letters, public filings, regulatory filings, updated policies and procedures, due diligence questionnaires, among others.

Coordinate periodic information sweeps of underlying managers and report the results to the Operational Due Diligence team and senior management.

Participate in the negotiation of fund legal terms in conjunction with internal and external legal counsel.

Conduct special projects as needed and communicate results to senior management.

Prepare internal resource documentation outlining our operational risk and operational procedures for training purposes.

Build and maintain professional and networking relationships with industry constituents, including investment managers, service providers, and industry peers/competitors.

REQUIREMENTS

Bachelor’s degree or equivalent in Accounting, Finance, or other relevant major with a superior grade point average.

Graduate degree and professional accounting and/or financial designations a strong plus.

Three to four years of experience, including the evaluation of internal control environments, operational risk management, or related areas.

Experience in the alternatives investment management industry, including hedge funds, private equity, real estate, and infrastructure. Experience with direct investing would be desirable.

Understanding of processes within financial institution operations; knowledge of investment strategies and instruments.