Operational due diligence in capital allocation
Successful capital raising has historically been driven by ROI and reputation. Investment managers are finding that these alone are no longer enough to attract capital from the largest investors.
Driven by an increasing awareness of the importance of robust compliance controls, asset managers, investors - particularly institutional investors and family offices - are taking a more careful approach to allocating their capital.
Prior to investment, operational due diligence is often undertaken by the investors and their advisers, to ensure that they are allocating capital to companies that have well established business practices, including good governance, culture, systems and controls. Companies that cannot demonstrate that they are positively embracing these virtues will likely lose out on the capital.
In addition to this, institutional investors will move their capital to firms with stronger systems and controls in place, leaving poorly structured investment managers with less AUM.
How CCL C.O.R.E can help
CCL has helped investment managers establish robust governance and risk frameworks for over thirty years. Our compliance platform, CCL C.O.R.E has a proven track record of helping firms maintain and grow their AUM.
When our clients implement CCL C.O.R.E into their business, not only do they have a system that clearly demonstrates the effectiveness of their compliance framework, but they are also able to show a strong risk and compliance culture within that business. The feedback from our clients is that CCL C.O.R.E has been instrumental in satisfying operational due diligence undertaken by investors. We have also met investor due diligence teams to demonstrate our platform to them, with positive feedback each time.
Request a demo to see how CCL C.O.R.E will help your business demonstrate compliance and grow your AUM.