The Foreign Corrupt Practices Risk: Understanding the Investment Risk to Hedge Funds

In this article, Matt Reinhard discusses the risk to hedge fund managers from failing to evaluate the FCPA risks of their investments. A properly structured due diligence process will help screen and identify for such FCPA risks. While the particulars will vary from fund to fund (and the type of investment being contemplated (for instance the due diligence of a passive stock investment will necessarily be a different than undertaking a controlling interest in a company) the goals of FCPA due diligence are always the same: to identify corruption red flags and ensure that the investment target has adequate anti-corruption controls in place in ensure it is not violating the FCPA.
Related Files
Related Links