What is the Due-Diligence Process?

By Avantis Wealth - November 22, 2021

Managing risk in an investment, and matching that to your situation is a key element of investment analysis. For many, it forms a critical part of their decision-making process.


Introduction

Avantis Wealth takes the Due Diligence issue seriously. We have an internal Due Diligence process that oversees the collection, processing and analysis of information about each investment we make available.

We believe that our strong focus and complete transparency on the due diligence process positions us firmly as champions of our clients’ interests. This, in turn, provides a robust structure for decision making that is to our clients’ benefit.

One important element to highlight is that our due diligence process is not an exercise performed solely during our initial analysis of the investment. We have a method to continually monitor live investments throughout their life-cycle, ensuring we have an early warning system to alert us to any problems.

What we do

Before accepting an investment to market, we conduct a rigorous Due Diligence procedure concerning potential investments, their providers, and key persons.

All information and data collected is then reviewed by our Sales, Investment and Operation Managers to determine if any information needs to be revisited, before preparing for submission to the Investment Management Committee (IMC).

Once submitted, the IMC then votes to Accept or Reject the investment.

Along with the use of our knowledge and expertise, we have invested heavily in Corporate Data and Intelligence sources to provide the basis for us to examine, analyse, and assess critical aspects of an investment proposition prior to marketing it to suitable potential investors.

Why we do it

At the forefront of our practice, we highly value our clients and their continued business.

We believe that our approach to compliance offers a superior level of service compared with our competitors. We are now uniquely positioned to detect, manage, and mitigate risks that we deem to be potentially adverse to one of the investments in our portfolio.

This approach enables us to make information available to our investors at the earliest possible stage so that they can make well-informed decisions on their investment.

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How we do it

Data & information is gathered from multiple open sources, such as 800 + Watch Lists and Global Sanction Databases. In addition, we check and search databases in relation to the fitness and propriety of key persons, their associates and their associated directorships and business links to other companies or investments.

As part of our sizeable investment in compliance expertise and technology, we are now able to gather data from the Dark Web and factor this into our assessment where applicable.

We have developed a bespoke 'horizon scanning' capability that enables us to proactively monitor our investments during the whole life cycle of the investment.

Our Proactive Management tool also allows us to monitor accurate and live information regarding the company's financial health. If there are triggers or areas of concern, this will prompt an Avantis Wealth compliance investigation.

Our receipt of these early warning triggers enables us to make informed, evidence-based decision about the levels of Risk associated with an investment at the earliest stage.

What it means for you

Our aim is to deliver peace of mind when you invest with us. Avantis Wealth is proactively monitoring the key aspects of your investment and, where appropriate, will let you know when a decision is taken by us to vary our position on whether we continue to market the investment, suspend, or withdraw it from our portfolio.

What is available to you?

Any source documents that are not commercially or legally sensitive that have led to a decision for us to vary our position on an investment will be open to you.

This will be in a user-friendly schedule of disclosable material. Each item will contain a description of the document and a hyperlink to the most original source. This will allow you to reach your own decision regarding the contents of the document.

These documents are available upon request. If you are considering an investment and wish to review these items, please call us on 01273 447 229, or e-mail us at admin@avantiswealth.com.

For monitoring purposes, we categorise investments the following way:

  • Live Investments - those that are in our current portfolio
  • Impaired Investments - investments that have in some way failed to meet their contractual requirements
  • Suspended Investments - investments that are suspended temporarily from our portfolio and that may be subject to a Compliance Review. These might not be contractually broken, but nonetheless, require further scrutiny by Avantis Wealth.
  • Withdrawn Investments - this category can account for a number of different circumstances ranging from an investment being withdrawn due to a change in our assessment of the Risks associated with it, to merely becoming over or fully subscribed. It's critical to note that almost every investment will end up being withdrawn at some point in the future.
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