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The Power of Benchmarking in Due Diligence Reporting [VIDEO]

by Jacob Heidkamp

At FactRight, we benchmark alternative investment programs based on their structural competitiveness on front-end loads, operating fees performance, and operating performance metrics.

Operational Benchmarks

We analyze operational benchmarks such as distribution coverage (including percentage of distribution from operating cash flows), expense analysis (including GNA expenses, acquisition and advisory fees), and the effects of expense report and expense reimbursement from the sponsor. 

Analyzing Leverage 

We also analyze leverage on deals including overall leverage, sensitivity to interest rate risk, and debt maturity profiles.

Other metrics we utilize to compare performance for real estate funds include FFO and MFFO growth and net operating income as a percentage of average assets.

We benchmark to identify peer comparisons and evaluate trends in operating performance for alternative investment programs. We do this to help you make informed and better investment platform decisions for your clients.

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Filed Under: Due Diligence, Video