Here are some specific questions family offices can ask private debt managers to ensure transparency:
- What is your investment strategy, and how does it align with our investment objectives?
- What is the size and composition of your portfolio, and how do you manage risk?
- What is your track record, and how have you performed in different market environments?
- What is your process for sourcing and evaluating investment opportunities, and how do you conduct due diligence?
- What is your fee structure, and how do you ensure that it is aligned with the interests of investors?
- What is your risk management framework, and how do you manage credit risk, liquidity risk, and interest rate risk?
- What is your approach to transparency, and how do you communicate with investors about your investment activities?
In summary, family offices can ask private debt managers specific questions about their investment strategy, portfolio composition, risk management, track record, fees, and transparency to ensure that they are transparent about their activities.