Operational Due Diligence

Institutional investors rely on operational due diligence to evaluate whether an organization has the governance, infrastructure, controls, and operational discipline necessary to support long-term success.

MCM Advisors provides independent operational due diligence (ODD) services to family offices, institutional investors, and alternative investment allocators evaluating external investment managers. Drawing on more than 25 years of firsthand investment management leadership experience, we assess the operational infrastructure, governance, financial controls, valuation practices, liquidity and counterparty exposure, and service-provider relationships that support a manager's investment activities. Our services include pre-investment assessments, targeted risk reviews, and ongoing manager monitoring. We also work with investment managers to strengthen their operational infrastructure, prepare for institutional investor due diligence and DDQs, and address areas requiring improvement. Our approach combines institutional standards with the practical perspective of having built and managed the operations of a global investment firm.

Strong governance is the foundation of every institutional organization. We evaluate governance structures, reporting frameworks, internal controls, organizational accountability, and operational resilience to determine whether the organization can effectively support its business objectives.

• Governance structure and organizational review
• Internal control assessment
• Documentation and policy evaluation
• Reporting framework analysis
• Operational resilience assessment
• Recommendations for governance enhancement

Service providers play a critical role in operational success. We independently evaluate key third-party relationships to determine whether responsibilities, oversight, performance expectations, and operational controls meet institutional standards.

• Administrator review
• Auditor, tax advisor, and legal counsel evaluation
• Prime broker and custodian assessment
• Vendor oversight analysis
• Service level and accountability review
• Operational infrastructure assessment

Effective organizations proactively identify and manage operational, regulatory, governance, and reputational risk. We evaluate compliance frameworks, organizational controls, and potential risk exposures while identifying opportunities to strengthen oversight.

• Regulatory framework review
• Compliance program assessment
• Operational risk evaluation
• Governance risk analysis
• Background and reputational review
• Control gap identification

Operational due diligence is an ongoing process rather than a single event. We provide periodic assessments and continuous monitoring to help organizations maintain strong governance, adapt to changing regulatory expectations, and preserve institutional-quality operating standards.

• Periodic operational reviews
• Governance monitoring
• Service provider oversight
• Risk tracking
• Remediation monitoring
• Executive reporting