Due Diligence Matters - August 2025
perfORM is an award-winning, international (UK, Switzerland, USA and UAE) and standalone Operational Due Diligence solutions provider with 150+ years of collective ODD experience. Over 300 operational due diligence reviews have been completed since the start of 2023.
The ‘ORM’ in perfORM stands for Operational Risk Mitigation. Please contact us if you would like to discuss our services, or to receive sample ODD Reports, thank you.
Strengthening VC Practices through Operational Due Diligence
In the ever-evolving landscape of VC, robust operational due diligence is key to unlocking institutional capital. This critical process can play a pivotal role in shaping VC practices, establishing that investments are not only sound but also transparent and reliable for investment.
How perfORM supports VC and Growth Funds
perfORM typically supports VC and growth funds by conducting evaluations of their operations, either on behalf of institutions, such as pension funds, or directly for VC managers, via our ODD Report Solution.
Our experience extends over 60 VC manager reviews. The core areas evaluated include management processes, controls around cash movements, information security, compliance and risk management. By carefully assessing these elements, we can identify potential risks and inefficiencies, thereby allowing stakeholders to make more informed decisions. A robust ODD process helps in selecting funds that conform to core institutional capital requirements of transparency, internal controls and risk management.
Strategic Importance of ODD in VC
As VC funds mature and scale, the strategic importance of ODD becomes even more pronounced, encouraging GPs to maintain high standards of governance and operational efficiency, key for safeguarding investor interests and meeting institutional capital needs.
Voluntary proactive ODD via our ODD Report Solution promotes discipline, alignment, risk transparency and a culture of accountability. Upon request, we announce completed reports (see below) and direct queries to the GP, who can provide a link to our report at their discretion free of charge. Clients can also use the perfORM logo on their marketing materials, website etc, demonstrating that they have undergone a rigorous operational review.
Value of ODD for Smaller or New GPs
ODD is equally important for smaller or new GPs. Early adoption of appropriate operational practices can help these firms establish credibility and attract investors. It provides a clear framework for operational excellence, helping new GPs navigate operational complexities with confidence.
Geographical Differences and Best Practices
The approach to ODD can vary across geographies. For instance, the EU and US fund ecosystems have different regulatory environments and market dynamics. In the EU, there is often a greater emphasis on governance and regulatory awareness/conformity, while in the US, the focus may be more on operational efficiency, transparency and innovation. However, because the fundamental tenets of operational risk management apply across all types of entities, at perfORM, we adopt a pragmatic approach that caters for VCs and investors in all jurisdictions, ensuring a balanced and comprehensive evaluation.
Common Red Flags and Operational Blind Spots
Through our extensive experience, we have identified several common red flags and operational blind spots. These include inadequate internal cash controls, conflicts of interest and insufficient risk management practices, such as lack of segregation of duties. For example, the processes for moving cash out of funds may be weak, particularly for smaller firms with few employees; one individual may be solely responsible for moving money and for reconciling the bank accounts which, given that significant sums may be held by the fund, presents a material risk. Addressing these issues proactively can prevent potential problems and enhance the overall integrity of the fund.
Recommendations for Pension Funds and Other Institutional Capital
For pension funds and institutional capital looking to assess VC funds more effectively, we recommend a thorough and systematic approach to ODD.
By highlighting operational best practices and providing actionable insights, perfORM seeks to empower GPs and institutional investors to navigate the complexities of VC operations with greater ease and confidence. Ultimately, our goal is to foster a more transparent and efficient investment environment, where long-term capital can thrive and contribute to the growth of innovative ventures.
ODD Report Solution
Our ODD Report Solution is not just another tick in a box, it is a fast growing and innovative approach to operational due diligence. A pragmatic solution for Investment Managers and Service Providers which engage us to complete an ODD review.
“We believe in operational excellence, doing things ‘the right way’ and holding ourselves accountable for delivering institutional-grade asset management. Working with perfORM to review our processes thoroughly is key to ensuring our investors have independent insight, understanding, and confidence in how we manage their assets. We appreciate the perfORM team’s forensic review of our documentation and processes and look forward to collaborating again” – Investment Manager ODD Report Solution client
Investment Manager: Redhedge Asset Management, LLP – please contact here to request access to our July 2025 dated ODD Report.
Investment Manager: Hyperion Decimus, LLC – please contact here to request access to our June 2025 dated ODD Report.
Investment Manager: MNNC Advisors (Cayman) SEZC – please contact here to request access to our June 2025 dated ODD Report.
Investment Manager: GrandLine Investment Management Ltd – please contact here to request access to our March 2025 dated ODD Report
Investment Manager: Spectra Capital, LLC – please contact here to request access to our March 2025 dated ODD Report
Investment Manager: Gemcorp Capital Management Limited – please contact here to request access to our January and March 2025 dated ODD Reports
Investment Manager: Hivemind Capital Partners UK LLP – please contact here to request access to our January and April 2025 dated ODD Reports
Investment Manager: MARK Capital Management LP – please contact here to request access to our December 2024 dated ODD Report
Investment Manager: 24 Capital Management Ltd – please contact here to request access to our December 2024 dated ODD Report
Investment Manager: Edge Capital Investment Management, LLC – please contact here to request access to our September 2024 dated ODD Report. UNDERGOING ANNUAL RENEWAL PROCESS
Investment Manager: Fasanara Capital Limited – please contact here to request access to our July 2024 dated ODD Report
Investment Manager: Eltican Asset Management SAS – please contact here to request access to our July 2024 dated ODD Report
Digital Asset Service Provider: Copper Technologies (Switzerland) AG – please contact here to request access to our April 2024 dated ODD Report. UNDERGOING ANNUAL RENEWAL PROCESS
Investment Manager: Coral Cove Capital Ltd – please contact here to request access to our January 2024 dated ODD Report
Investment Manager: Wincent Capital Management Limited – please contact here to request access to our September 2023 dated ODD Report. UNDERGOING ANNUAL RENEWAL PROCESS