Based on the search results, here are some red flags that family offices should look out for when evaluating private debt managers:
- Lack of transparency: Family offices should be wary of managers who are not transparent about their investment process or portfolio holdings 1 .
- Poor track record: Family offices should be cautious of managers who have a poor track record of generating returns or managing risk 1 .
- Lack of expertise: Family offices should be cautious of managers who lack expertise in the private debt market or who do not have a deep understanding of the market 1 2 .
- High fees: Family offices should be cautious of managers who charge high fees, as this can eat into returns 1 .
- Inadequate risk management: Family offices should be cautious of managers who do not have a robust risk management framework in place to manage credit risk, liquidity risk, and interest rate risk 1 2 .
- Lack of alignment of interests: Family offices should be cautious of managers who do not have a strong alignment of interests with investors, as this can lead to conflicts of interest 1 .
In summary, family offices should be cautious of managers who lack transparency, have a poor track record, lack expertise, charge high fees, have inadequate risk management, or do not have a strong alignment of interests with investors when evaluating private debt managers.