Due Diligence

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Cimarron utilizes a disciplined approach to the evaluation of prospective investments. We apply the same rigorous methodology used for due diligence on our fund of funds investments on behalf of clients who, on an advisory basis, wish to outsource that service.

Preliminary Due Diligence

Cimarron conducts preliminary due diligence on prospective fund investments to identify initial strengths and weaknesses and determine a firm's eligibility for a more in-depth suitability assessment.

In conducting a preliminary due diligence evaluation, Cimarron will generally:


• Review the proposed terms of the offering;
• Perform initial reference checks on the firm and its principals;
• Compare the overall portfolio strategy to historical strategies of previous portfolios; and
• Review the firm's historical rate of return by fund.



Evaluation and Verification Due Diligence

Should a fund warrant further review, Cimarron may be engaged to:

• Review the level of demonstrated relevant experience of the management firm and its principals;
• Review the overall fund quality, conducting reference checks on firm principals and interviewing past principals, employees, fund investors, co-investors and portfolio company CEOs;
• Review the fund investment philosophy;
• Review the historical investment performance of all funds previously managed by each principal and the management firm;
• Review the management firm's probability of success in fundraising;
• Review the fund structure and terms in relation to industry standards; and
• Summarize the due diligence review.