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Due Diligence Framework for Direct Investing

25 Pages Posted: 16 Apr 2016 Last revised: 8 Sep 2016

Sameer Jain

Active Allocator Inc.; Massachusetts Institute of Technology (MIT); Harvard University

Rishi Khettry

Active Allocator Inc.

Date Written: April 14, 2016

Abstract

The capital allocator is in the business of entering into partnerships with fund sponsors1 to potentially generate significant returns, mainly through long-term capital appreciation, by making, holding and disposing of privately negotiated equity and related investments. A methodical approach to selecting sponsors — which combines scientific rigor with seasoned subjective judgment — may contribute to creating strong results in a variety of economic environments. This paper presents a ‘best practices’ framework for selecting financial sponsors.

Keywords: due diligence, capital allocation, alternative investments, private equity

JEL Classification: G24

Suggested Citation

Jain, Sameer and Khettry, Rishi, Due Diligence Framework for Direct Investing (April 14, 2016). Available at SSRN: https://ssrn.com/abstract=2765181 or http://dx.doi.org/10.2139/ssrn.2765181

Sameer Jain (Contact Author)

Active Allocator Inc. ( email )

NJ 07310
United States

Massachusetts Institute of Technology (MIT) ( email )

77 Massachusetts Avenue
50 Memorial Drive
Cambridge, MA 02139-4307
United States

Harvard University ( email )

1875 Cambridge Street
Cambridge, MA 02138
United States

Rishi Khettry

Active Allocator Inc. ( email )

NJ 07310
United States

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