Investor due diligence

Investor due diligence involves thorough screening and analysis of a potential investment when entering a fund. The purpose is to ensure that the underlying fund structure is aligned with the objectives, risk tolerance, investment strategy and investment terms of the investor. Our team is able to assist and guide investors in this process and to provide clear, precise and transparent advice before the final investment decision is being made.

Our team identifies any potential red flags or risks that may impact the underlying fund and their potential consequences on the client as an investor, ensuring that the client can make an informed decision. 

Our clients

We assist all types of investor, including professional, institutional, supra-national and ultra-high-net-worth individuals who are looking for comprehensive and concise advice before investing in a UCITS, an AIF or a co-investment vehicle, whether structured under a contractual or corporate form, or subject to a Luxembourg product law (i.e. SIF, SICAR, RAIF, UCI under Part I or Part II of the 2010 Law), and whether it is tax opaque or transparent for Luxembourg purposes.

Our services

We assist our clients in this due diligence process that may involve several steps, including:

• A market analysis of the targeted investment funds
• An evaluation of the management structure of the fund (including the fee flow and the limits of the investor’s liability) 
• A legal and regulatory review of the fund 
• A thorough review of the documents of the fund to identify potential risks the specific fund may face
• A side letter to mitigate risks identified during the review of the fund documentation and/or to address the investor’s requirement based on its legal or regulatory status
• A review of required legal opinions in connection with the underlying fund