Operational Due Diligence

Operational Due Diligence is an integral component of the FQS investment process and we believe it is paramount to have a dedicated Operational Due Diligence team to conduct the in-depth due diligence prior to making an investment. Our Operational Due Diligence focuses on a fund’s legal structure, corporate governance, trading process, valuations, compliance and regulation, and has full right of veto over any investment candidate.

Our Services

FQS has extensive expertise in conducting in-depth operational due diligence by offering a flexible and tiered Operational Due Diligence service tailored to our clients’ needs:

Operational Review

  • Background checks – for those clients wishing to conduct an initial background check on the management company and/or its key individuals the background check assess any historical legal or regulatory issues in addition to assessing the firm’s credit worthiness
  • In-depth Document Review Service – all of the fund’s constitutional documentation, including offering documents and audited financial statements are reviewed. Each report provides an executive summary of the key facts and primary risk factors
  • Third Party Manager Interview Service – in addition to the in-depth document review service we offer a more thorough operational analysis conducted primarily by conference call interview with the manager. Key metrics are assessed against industry best practice and a detailed report produced summarizing the operational strengths and weaknesses
  • Comprehensive Operational Due Diligence Review – our flagship service involves both the full documentation review and manager interview process, but in addition our dedicated Operational Due Diligence team conduct a full onsite review at the manager’s primary office and a detailed due diligence report is produced summarizing the findings

Operational Review

In addition to the Operational Due Diligence review, FQS offers its clients and ongoing monitoring service. The monitoring service includes re-reviews of the fund’s constitutional documentation, as well as updated conference all interviews with the manager and follow up onsite meetings.

Operational Due Diligence Reports

The FQS Operational Due Diligence reports include a detailed assessment of the manager and the fund in each of the following key metrics:

  1. Overview of the firm & fund(s)
  2. Fund structure & Key Terms
  3. Investment Manager & Corporate Governance
  4. Trading Process & Conflicts of Interest
  5. Valuation & NAV Procedures
  6. Cash Management
  7. Custody & Counterparty Risk
  8. Liquidity Risk & Business Continuity
  9. Compliance, Regulation & Litigation
  10. Appendix & Document Review

Welcome to the website of FQS Capital Partners

Please read the Terms below carefully which may be subject to change without notice.

Terms of Use and Legal Disclaimer

By accessing this site you signify your agreement with, and understanding of, the following Terms of Use and Legal Information pertaining to both this site and any material on it. This site is offered to you conditioned on your acceptance without modification of the terms, conditions, and notices contained herein. Your use of this site constitutes your agreement to all such terms, conditions and notices. FQS Capital Partners L.P & FQS Capital Partners LLP (together “FQS”), hereinafter defined, reserves the right to change the terms, conditions, and notices under which this site is offered.

General information and disclaimer

The information contained in this website has been prepared and is communicated by FQS Capital Partners L.P which is registered with the U.S Securities Exchange Commission as an Investment Adviser and whose registered address is 40 North Country Road, Port Jefferson, New York 11777 and FQS Capital Partners LLP, which is incorporated under the laws of England and Wales (company no. OC348870), is authorised and regulated by the Financial Conduct Authority (FCA registration number 513713 - the link to the FCA register is: https://register.fca.org.uk/), together both firms are described herein as 'FQS' and FQS Capital Management (Cayman) Limited, an exempted company registered in the Cayman Islands with registered number 236656 having its registered office at, 4th Floor, Harbour Place, 103 South Church Street Grand Cayman, KY1-1002.

FQS Alternatives Fund L.P is a Delaware Limited Partnership and FQS Alternatives Fund Limited is an open ended multi-class investment company incorporated with limited liability in the Cayman Islands (together the "Funds").

This website is published solely for informational purposes and does not constitute or form part of any offer or invitation to sell, or the solicitation of an offer to subscribe for or purchase any investment and is provided for information purposes only. Neither this website, nor the fact of its distribution form the basis of, nor may be relied on in connection with, any contract to subscribe for or purchase any investment. This website does not constitute an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not authorised or to anyone to whom it is unlawful to make such a solicitation. Recipients should inform themselves of and observe all applicable laws and regulations including, without limitation, any taxation or exchange control legislation in the countries of their citizenship, residence, domicile or such other status as may be relevant in connection with any subscription of shares. FQS disclaims all responsibility in the event that you download any information from the website in breach of any law or regulation of the country in which you reside.

United States of America: In particular, the shares in the FQS Alternatives Fund Limited have not been registered under any United States securities legislation and they are not being offered, directly or indirectly in the United States of America or in any of the territories or possessions or areas subject to its jurisdiction or to its citizens or persons thereof. The FQS Alternatives Fund LP is not registered as an investment company by virtue of Section 3(c)(7) of the Investment Company Act of 1940, as amended (the "1940 Act"). It complies with Section 3(c)(7) of the 1940 Act which permits private investment companies (such as the Partnership) to sell their interests, on a private placement basis, to an unlimited number of "qualified purchasers", as that term is defined under the 1940 Act.

United Kingdom: Any financial promotion contained in this website is issued by FQS Capital Partners LLP which is authorised and regulated by the Financial Conduct Authority ("FCA"). The Funds are defined as "Unregulated Collective Investment Schemes" ("UCIS") and the promotion of a UCIS either within the UK or from the UK is severely restricted by statute. Consequently, relevant offerings are only made available to professional clients and eligible counterparties as defined by the FCA and also to persons of a kind to whom the Fund may lawfully be promoted by an authorised person by virtue of Section 238(5) of the Financial Services and Markets Act 2000 and COBS 4.12.4R. Shares in the Funds should only be purchased by persons with experience of participating in unregulated schemes and any other person who receives such documents should not rely upon them. Though FQS Capital Partners LLP is authorised and regulated by the FCA, most if not all of the protections provided by the United Kingdom regulatory system will not apply to investments in the products & services detailed within this website.