NYCEDC will select one Consultant for the general purpose of providing operational due diligence of Fund Managers seeking investments from the NYC Catalyst Fund II. The Consultant selected must provide the Services in connection with each of the following tasks (the “Tasks”, and each individually, a “Task”). Task 1: Operational Due Diligence General Operations a) Meet, virtually and/or in-person, with the Fund Manager’s management and investment management personnel to gain an understanding of the firm and its impact investment strategies. NYCEDC has a preference for in-person diligence meetings. b) Evaluate the adequacy of the Fund Manager’s compliance procedures and policies and advise as to any perceived weaknesses. Includes evaluating the firm’s and principal(s)’ regulatory registration, as applicable, and compliance histories; investigating the nature and outcome of any past or current regulatory actions, exams, etc.; and confirming that the firm is properly registered with any required regulatory bodies. c) Evaluate the Fund Manager’s legal and fund structures. Advise on any perceived weaknesses. d) Evaluate the Fund Manager’s banking relationships, including credit lines, for any indications of financial or operational control weaknesses. Evaluate cash controls and approval processes. e) Accounting and audit procedures should be reviewed. f) Evaluate the governance policies and adequacy of the Fund Manager’s internal control policies. Evaluate how the firm controls conflict of interest issues such as personal investing policies, side letters, allocation policies, etc. and advise as to any perceived deficiencies or weaknesses. g) Evaluate the Fund Manager’s technology and cybersecurity. h) Review the Fund Manager’s operations staffing and resourcing, as well as its policies and processes regarding employment, salaries, and pay parity. Evaluate the risk of the Fund Manager’s use of any outsourced services and/or consultants and advise as to any perceived weaknesses.
