Financial Statement Interpretation in Alternative Investment Due Diligence and Monitoring

Properly interpreting an Investment Company’s (e.g. Hedge Fund, Private Equity Fund, Fund of Funds, or Venture Capital Fund) Financial Statements is paramount in understanding their operations and is a necessary and important part of the due diligence process.  Over the past several years, regulators have added several types of disclosures to an Investment Company’s Financial Statements.  These disclosures are meant to provide investors with more transparency, however, are often confusing and difficult to understand.  Investors need to have an understanding of how an Investment Company is investing their money in order to make informed decisions – reading the financial statements is a critical part of this process.

This webinar will provide a review and discussion of an investment company’s financial statements and additional detail as to how to understand the basic information contained in the documents. The webinar will also provide insight and information on how to read financial statement footnotes to help provide additional transparency.

Duration: 58 minutes

Learning objectives:

• How to understand the various financial schedules that make up an Investment Company’s financial statements and how to use the information as part of the due diligence process.
• Interpreting the various footnotes of an Investment Company financial statement, including Level Hierarchy (ASC 820), Valuation Techniques and Unobservable Inputs (ASU 2011-04), Derivatives (FAS-161), etc.