 | Based in California, Catalina Partners is a boutique consultancy specializing in operational risk and due diligence for alternative investments.
History Catalina Partners was founded by Patricia Watters, former COO and CCO of Pacific Alternative Asset Management Company (“PAAMCO”), a fund of hedge funds in Irvine, California, and by Mason Snyder, former Director with the Regulatory & Capital Markets Consulting practice of Deloitte & Touche LLP in Los Angeles. At PAAMCO, Patricia led the formation of an operational due diligence function with a fully-dedicated staff. This group was responsible for pre-funding operational due diligence and for post-funding monitoring of advisors. Operational due diligence was performed independently of portfolio and performance due diligence. At Deloitte & Touche, Mason routinely led consulting teams to perform targeted operational due diligence on behalf of investors. He also designed and implemented due diligence programs for investment managers and public pension plans. Mason conducted numerous operational risk assessments, many leading to the design and implementation of effective solutions such as controls and compliance enhancements, valuation policy definition and documentation, and investor reporting automation. Philosophy Investors expect to be rewarded for taking additional investment risk. However, they will not knowingly assume additional business risks, since increased business risks do not increase up-side performance potential. Catalina Partners delivers value to investors and advisors alike in understanding and mitigating business risks. Several drivers form the basis for our business model: - In the wake of the Madoff scandal and numerous other Ponzi schemes, institutional investors are demanding broader and deeper operational due diligence regarding their investment advisors’ or consultants’ service providers.
- A broader range of business risks, extending to credit, liquidity, valuation and counterparty risks, should be assessed and monitored to assure investors and advisors that business risks are managed effectively.
- Advisors must efficiently deliver more transparency into investment and business processes.
- Independent expert oversight provides unbiased, unconflicted risk assessments to assure fiduciaries of institutional assets that all risks are properly managed.
- Investors are encouraging advisors and third-party service providers to adopt prudent standards such as the President’s Working Group’s best practices for hedge funds and investors and the Managed Funds Association’s sound practices.
- Fiduciaries, including governing boards and expert advisors, must meet higher standards of care.
Value Proposition
Catalina Partners provides assurances to institutional investors that their investment advisors perform their fiduciary responsibilities and manage business risks associated with an investor’s portfolio. The firm is comprised of independent experts who, individually and collectively, are free of potential conflicts of interest with auditors, consultants and investment advisors. Our advisory services provide clarity around critical business risks related to a portfolio or a manager’s business operations, and then chart a path to remediate the issues identified and/or facilitate informed decision making to solve the problem. |
