Private Equity Forensic Audit

Look up in the sky, is it a bird or a plane, no it’s PE, no not the price earnings ratio, not phys ed, or public engineer nor proper elimination and hardly public enemy, it’s PE as in private equity.  In the unending quest for diversification, enhanced yield, more income and risk reduction many investors including the largest public pension funds like CalPERs and thousands of individual accredited investors have turned to Private Equity.

Why might it be helpful to obtain an independent assessment of Private Equity?  We need look no further than SEC Chair Mary Jo White testimony.


… Some of the common deficiencies from the examinations of these (1,800) advisers that the staff has identified included: misallocating fees and expenses; charging improper fees to portfolio companies or the funds they manage; disclosing fee monitoring inadequately; and using bogus service providers to charge false fees in order to kick back part of the fee to the adviser.

What is private equity?  Private Equity, an alternative investment asset class, includes but is not limited to LBO’s (Leveraged buyouts), distressed investing, mezzanine financing, venture capital and angel investing.  Private equity investments are illiquid, however, no matter the type, category or name, after the formality of the private placement memorandum (PPM) “the disclosure document” when you get right down to it, the private equity (PE) asset class is a complex conversation about leverage.  PE, when it’s successful, can be a tonic or like a visit to a spa injecting new blood in the form of people, ideas, capital structure, domicile and capital to rejuvenate (or rationalize which is the economic operating term) mature companies.

The largest private equity buyouts include Hertz rental cars, First Data (credit card processor), Hilton Hotels, Kinder Morgan an energy company and RJR Nabisco done in 1989, subject of the book and movie Barbarians at the Gate plus smaller deals like Dunkin’ Donuts, J. Crew, Toys “R” Us and Burger King.  Thousands of deals take place every year involving companies with much smaller valuations.

PE Forensics, is a team of experienced professionals with over 100 years of highly specialized high touch expertise dating from the 1960’s to today.  Private Equity PE Forensics looks at the fund, deal structure, due diligence, target companies, valuation, complex fiduciary duty analysis to forensic accounting, industry ratio analysis, SEC filings and more to assist investors, limited partners, fund sponsors and legal counsel to fulfill their variegated and daunting fiduciary duties.

When you need to know PE in depth contact us for a PEDDLS (Private Equity Due Diligence Litigation Support) including evaluation, due diligence or litigation support.

Contact or (310) 943 – 6509

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