We were hired by a fund of funds to look at a pair of hedge fund managers operating in the Midwestern U.S. We were not granted access to the individuals and were asked only to search the public record and media.
We began by researching real property ownership of both men going back 20 years, as well as the ownership of the suburban house in which their hedge fund was housed. We also searched litigation involving the two men in the four counties in which they had lived and worked during their careers, as well as litigation involving their previous funds.
We were able to state that both men either had been or were currently in litigation against funds they claimed to have founded. We also found two companies associated with the men that they had not put on either their resumes or on their personal LinkedIn pages. In addition to questions about the fund’s investment strategy, our client was able to have a much better informed conversation with the men about their relationships with colleagues, as well as the option to contact former colleagues of the men whom we had identified.
For more information, read our article in Thomson Reuters News & Insight: "Forensic/Leadership Due Diligence in Private Equity, Mergers and Acquisitions."
In addition, Philip Segal was quoted in Corporate Counsel article on the dangers of affairs among corporate executives, "Petraeus, Lockheed, and the Corporate Dangers of Executive Affairs."