For instance, Harbourfront Wealth Management strives for extensive diversification within the constraints of performance goals.
“We’ll start with due diligence around talent, tenure, track records, and other KPIs,” said Travis Forman, Harbourfront Wealth Management portfolio manager and director of private investment strategy.
“But then we’ve also hired a third-party due diligence team that takes a deep dive into everything we do. If we get the green light, then it’s up to the investment fund services team to make sure it matches mandates on liquidity and other factors before going to an investment committee. If the product passes all of that, we begin to allocate,” he explained.
Frank Laferriere, senior vice president and chief operating officer at Mandeville Private Client, Inc., said the institutional investor’s alignment with the product is the main factor at Mandeville.
“We look at who we are entrusting our clients’ money to. Do these people have skin in the game? Would this be the type of investment the most erudite, successful investor would invest in? If not, it doesn’t make it to the platform.”
