What is ESG and Where is it Headed?

by Julie Olsen

Background 

Filed Under: Due Diligence, Alternative Investments, Best Practices

Evaluating Cap Rates Through a Due Diligence Lens

by Kevin Kirkeby

I’m going to get this out of the way right now. I don’t know where cap rates will end this year, and certainly can’t predict where they will be in five years or in ten. What I do know is that cap rate compression has provided a notable tailwind to real estate performance for the past several years.[...]

Filed Under: Due Diligence, Real Estate, Alternative Investments, Best Practices

How Inflation and Interest Rate Increases Could Impact Real Estate-Focused Alternative Investments

by Jeff Baumgartner

Inflation is running at 8.6%, and the Fed has been aggressively raising interest rates. It is now signaling that equally large rate hikes could be on the horizon as early as next month. The Fed’s dual mandate is to keep the economy at full employment while at the same time keeping inflation under[...]

Filed Under: Due Diligence, Real Estate, Alternative Investments, Best Practices

A Guide to Understanding Proposed Changes to the QOZ Program

by Russell Putnam

In 2017, Congress created the qualified opportunity zone (QOZ) program to encourage long-term investment in economically distressed communities by providing investors with three tax incentives to help drive private capital to lower-income areas throughout the country. Since then, the FactRight team[...]

Filed Under: Due Diligence, Alternative Investments, Qualified Opportunity Funds, Best Practices, QOZ Funds

Investment Committee Best Practices for Wealth Managers

by Julie Olsen

An investment committee (IC) provides wealth management firms a formalized mechanism for improved due diligence, ongoing monitoring, and decision-making.  A good IC aligns organizational goals, roles, and processes and enhances accountability, clarity of purpose, and shared knowledge among the[...]

Filed Under: Alternative Investments, Best Practices

Largest Interval Funds - A Due Diligence Guide

by Gavin Aydt

An interval fund is a subcategory of closed-end funds and is a Regulated Investment Company (RIC), which is subject to 1940 Act regulation. Shares of interval funds are not generally “redeemable,” which is why the funds are classified as closed-end rather than open-end funds. Interval funds are so[...]

Filed Under: Due Diligence, Interval Funds

Highlights from FactRight's RIA Spring Due Diligence Conference

by Kate Stephany

Was it just me, or did our most recent conference in Scottsdale feel, dare I say it, almost normal? I mean, the sun was shining, the palms were swaying, and the beer burro was melting hearts.

Filed Under: Due Diligence

Inflationary Pressures on Credit-Focused Alternative Investment Programs

by Jacob Heidkamp

Inflationary pressures have increased markedly in the global economy over the last year. CPI prints have recently reached levels not visited in almost four decades.

Filed Under: Alternative Investments, Market Research, Credit

Using Non-Listed REIT Metrics: FFO, AFFO, and MFFO Due Diligence

by Julie Olsen

Many real estate investment trusts (REITs) voluntarily report supplemental performance metrics. Industry organizations established non-GAAP metrics to build credibility and broader capital markets acceptance of REITs by enhancing comparability of operating performance across funds. Two decades ago,

Filed Under: Due Diligence, REITs, Alternative Investments, Best Practices

Financial Statement Due Diligence: GAAP Accounting Preferred

by Kemp H. Hanley

I like cash, after all, who doesn’t? But I’m talking about financial statement presentation today. The cash-basis, while it may be the simplest presentation method, is not necessarily best for financial analysis of a product sponsor.

Filed Under: Due Diligence, Alternative Investments, Best Practices