Non-control private investments present specific challenges to family offices and other investors. What type of resources, financial and otherwise, should be deployed in diligencing and negotiating prospective investments, as well as monitoring existing non-control investments?
Unfortunately, in all too many instances, private non-control investors who fail to allocate modest resources to investigative, legal, and operational diligence subsequently are forced to allocate substantial resources to litigation counsel for failed and quite possibly fraud-induced investments.
Kagen & Caspersen strives to provide cost-efficient but robust legal and operational diligence in advance of private investments. As part of the legal diligence process, we carefully assess the management team’s tolerance for the pro-investor language that we propose for investment documents.
A robust diligence process prior to investment should lead seamlessly to strong corporate governance and transparency after an investment. By working with all of the investors, Kagen & Casperen is able to provide post-investment monitoring solutions in a cost-effective manner.