Operational Due Diligence (ODD) Associate
As a member of the Firm’s Operational Due Diligence team, this individual will primarily be responsible for 1) assessing whether an investment is within the parameters of the Firm’s operational due diligence underwriting standards; and 2) monitoring investments on an ongoing basis from an operational risk perspective.
The individual will be involved in the following critical activities:
- Identify, analyze, and document risks associated with the operations (people, process, and technology) of underlying managers and sponsors across GCM Grosvenor’s investment strategies (i.e., absolute returns, private equity, real estate, infrastructure, alternative credit, etc.).
- Evaluate the adequacy and efficacy of the processes and systems used by alternative investment managers to monitor and manage the risks associated with non-investment functions, including finance, compliance, and information technology, among others.
- Develop, implement, and execute ongoing risk mitigation plans that enable GCM Grosvenor to monitor and manage the risks associated with its investments.
- Work closely with the firm’s investment team, in a “deal team” construct to collectively evaluate the merits of the investment.
- Evaluate the appropriateness of the legal structure and terms of investment vehicles; corroborate that the terms are in alignment with practice through interviews with investment managers.
- Collaborate with the firms internal and external legal counsel to negotiate pertinent legal terms.
- Provide excellent and timely client service to the Firm’s clients and internal stakeholders, including investments, business development, finance, among others.
The role may involve, but is not limited to, the following duties.
- Design, participate in, and document results of interviews of senior personnel at underlying managers, administrators, audit firms and other fund service providers, including on-site fieldwork at underlying investment managers.
- Document results of interviews, including risks identified, and make written recommendations to the Operational Due Diligence group and Operations Committee.
- Review and analyze financial statements, regulatory correspondence, manager materials, and other relevant documentation as part of operational due diligence reviews of underlying managers and document findings.
- Review and analyze background investigation reports received from third-party private investigation firms and document findings and GCM Grosvenor action plan.
- Prepare and review fund governing document abstracts for underlying fund governing documents, including a review of underlying fund liquidity and expense provisions.
- Read current periodicals to identify current hedge fund and private equity fund frauds, failures or regulatory proceedings and perform ‘root cause’ analysis.
- Review the timeliness and accuracy of investment performance and valuations as reported by the investment manager, while staying abreast of current developments affecting the investment manager’s personnel, infrastructure, operations, and third-party service providers.
- Review and monitor various hedge fund manager communications, including investor letters, public filings, regulatory filings, updated policies and procedures, due diligence questionnaires, among others.
- Coordinate periodic information sweeps of underlying managers and report the results to the Operational Due Diligence team and senior management.
- Participate in the negotiation of fund legal terms in conjunction with internal and external legal counsel.
- Conduct special projects as needed and communicate results to senior management.
- Prepare internal resource documentation outlining our operational risk and operational procedures for training purposes.
- Build and maintain professional and networking relationships with industry constituents, including investment managers, service providers, and industry peers/competitors.
EDUCATION, SKILLS AND EXPERIENCE REQUIREMENTS
In terms of cultural fit, the successful candidate will be self-motivated and energized by working amongst a group of thoughtful, intelligent, and driven colleagues. He or she will enjoy being part of an organization focused on excellence and will be a naturally collaborative person who enjoys interacting with individuals at all levels. Additionally, he or she will be a strong team player with a proactive approach and the ability to exercise discretion and judgment.
The ideal experience and critical competencies for the role include the following:
- Bachelor’s degree or equivalent in Accounting, Finance, or other relevant major with a superior grade point average as well as a graduate degree and professional accounting and/or financial designations.
- Four to six years of experience, including the evaluation of internal control environments, operational risk management, or related areas.
- Experience in the alternatives investment management industry, including hedge funds, private equity, real estate, and infrastructure. Experience with direct investing would be desirable.
- Understanding of processes within financial institution operations; knowledge of investment strategies and instruments.
- Capacity to work well in a fast-paced, changing environment with a high level of flexibility.
- Excellent writing and listening skills with a proven ability to disseminate information effectively and articulate thoughts in a clear and concise manner to both clients and staff through written correspondence, presentations and/or meetings.
- Attention to detail and concern for quality and accuracy of final product (and ability to balance that concern with deadlines).
- High degree of integrity and the ability to recognize the requirements of confidentiality.
- Demonstrated self-starter, continuous learner and independent thinker who can work collaboratively with others.
- Outstanding decision making and problem-solving skills.
- General working knowledge of key investment management operational functions (e.g., valuation, trading operations, counterparty risk management, safeguarding of cash, regulatory compliance programs, etc.).
- Willingness to travel, domestically and internationally.
- Well organized with a strong attention to detail; must have the ability to manage multiple tasks simultaneously in a cross-functional team environment.
- Commitment to excellent client service.
- Understanding of risk frameworks and tools, including some practical experience in analysis and documentation of operational risks.
- Ability to employ strategic interview techniques.
- Must have general PC experience and be highly proficient in MS Excel, MS Word, and SharePoint.
In terms of cultural fit, the successful candidate will be self-motivated and energized by working amongst a group of thoughtful, smart and successful colleagues. He or she will enjoy being part of an organization focused on excellence and will be a naturally collaborative person who enjoys interacting with individuals at all levels. Additionally, he or she will be a strong team player with a proactive approach and the ability to exercise discretion and judgment.
ABOUT THE FIRM
GCM Grosvenor is a global alternatives investment firm with $57 billion in assets under management in private equity, infrastructure, real estate, credit, absolute return strategies, and multi-asset class opportunistic investments. We have specialized in alternatives since 1971, and we are dedicated to unlocking value for our clients by leveraging our cross-asset class and flexible investment platform.
Our experienced team of approximately 500 professionals from diverse backgrounds serves a global client base of institutional and high net worth investors. GCM Grosvenor is headquartered in Chicago, with offices in New York, Los Angeles, London, Tokyo, Hong Kong, and Seoul.
A diverse, engaged team is critical to our ability to successfully create and deliver value to our clients. We are committed to creating an inclusive environment where diverse professionals can thrive professionally, and we are dedicated to training, retaining and promoting minorities, women, LGBTQ employees, veterans and individuals with disabilities. Over 55% of GCM Grosvenor employees and 43% of executive management are women and/or ethnically diverse individuals. In addition, we seek to drive a more diverse, inclusive industry through our partnership with diverse professionals organizations and by consciously working with subcontractors and vendors that are certified as minority-, women-, or persons with disabilities-owned businesses.
For more information, visit www.gcmgrosvenor.com.