Unlock Private Market Opportunities: The Advisor's Playbook for Due Diligence & Suitability

Description

This intermediate-level course teaches financial advisors how to evaluate private placement investments (such as real estate deals, private equity funds, etc.) through rigorous due diligence. It addresses assessing sponsor quality, analyzing offering documents and financial projections, identifying red flags, and determining suitability for clients in light of risk and liquidity. The content aligns with the Investment Planning domain, particularly alternative investments and risk management, and emphasizes the CFP professional’s fiduciary responsibility when recommending private deals.

Learning Objectives

Learning Objectives: Due Diligence and Deal Evaluation in Private Investments Upon completion of this course, participants will be able to: Evaluate Private Investment Sponsors and Managers: Assess a sponsor’s background, track record, and alignment of interest with investors. This includes reviewing the sponsor’s experience, past deal performance, and ethical history to judge their credibility and competence. Identify Red Flags and Due Diligence “Deal-Breakers”: Recognize warning signs in Private Placement Memoranda (PPMs) or investment proposals – e.g. lack of sponsor transparency, overly optimistic assumptions, conflicts of interest, ambiguous fee structures, or insufficient risk disclosure. Participants learn to spot issues that may indicate elevated risk or misalignment with client interests. Analyze Financials and Deal Structure: Interpret the financial projections and terms of a private deal. This involves scrutinizing the project’s business plan, capital structure (debt/equity mix, preferred return