Every project is different, nevertheless most comprise some or all of the following:
1. Develop and work through a master project plan and budget (from the point of view of both the manager and the fund).
2. Commercially advise on fund structuring and domiciliation decisions. Legal and tax advisors will hopefully give sound advice within their remit but what do the prospective investors want?
3. Advise on the selection of service providers to the fund and the manager. There are typically around a dozen service providers needed, split across both entities. Given clarity around:
a. The investment strategy;
b. The size and budget; and
c. The geography (where the manager is, the invested markets are and the main investors are)
a short list of 3 or 4 vendors in each space, who can offer the right service at the right price and have investor credibility for the manager’s specific needs, can be prepared. There is no one size fits all.
4. Help build the business and operational infrastructure, including work-flows, processes, controls, governance and written procedures and other documentation.
5. Help with preparation for operational due diligence, including assisting in the drafting of marketing related documentation – in terms of content.
6. Preparing for and choreographing the actual launch itself.
At the conclusion of the project the goal is for the client to have a robust, functional and cost-effective infrastructure – that is also investor-friendly and will therefore pass operational due diligence for the investor types being targeted.
Axzam represent great value in that:
- The client can delay hiring a COO until near launch, so saving a significant salary for a period of perhaps 6 months;
- Through familiarity with the market, Axzam are confident that clients can achieve best value for money from their service providers.
Axzam’s approach is to replicate the process of a relatively sophisticated institutional investor. This would involve reading all the available documentation and reviewing for anything that may be viewed unfavourably by an investor, including omissions and inconsistencies between documents.
The review would incorporate current best practice standards, including those mandated by AIFMD and advocated by organisations like AIMA and the HFSB. We also maintain close links with numerous experienced due diligence professionals while Peter Northcott is a member of AIMA’s Sound Practices Committee.
After the desk review we would then prepare a draft report listing all the items identified, with an assessment of their importance, and with suggestions as to how they could be addressed. We will then meet with you and ask any questions regarding outstanding matters (analogous to an investor due diligence visit) and then update our report into a final form. Guidance will be provided on how to prepare for the due diligence process itself. We can then meet again should you have any further questions.
Peter has extensive operations experience – both buy-side and sell-side – across a broad range of products. Therefore Axzam is able to offer a bespoke review of an Investment Manager’s operational infrastructure – including work-flows, processes, controls, reporting and technological utilization – with recommendations offered to enhance efficiency, reliability, customer service and value for money.
Change Management entails the engagement of Axzam Consulting Limited as an outsourced project manager – where a client lacks either capacity or relevant expertise - to oversee specific projects including, for example, the implementation of a new portfolio management system or a change of fund administrator.
Many firms, across all sectors, benefit from the engagement of Non-Executive Directors to provide independent oversight, relevant experience, governance expertise and a different set of eyes to discuss and review strategic decisions. In addition, regulators and investors are becoming increasingly keen on Non-Executive Directors taking a more prominent role in Asset Management governance.
Peter Northcott, Managing Director of Axzam Consulting Limited, meets these criteria and currently holds a number of relevant Non-Executive Directorship positions.
