What is the due diligence process?

Before companies are placed into the iSelect Fund, they must undergo an intensive round of financial and legal due diligence review by members of the iSelect team.  The information and materials gathered during iSelect’s internal review are then submitted, along with the company’s private placement memorandum (PPM), which sets forth the terms of the offering, for a second round of review by an SEC registered broker-dealer.  The independent broker-dealer performs its own review relying on the materials and any other information it needs to perform its review.  The broker-dealer’s review is an intensive process mandated by best practices and industry protocols designed to protect securities dealers’ and investors’ interest and includes examination of corporate materials and financial information, the company’s PPM and performance of background checks on key company managers, as set forth more fully in the broker-dealer’s report that is included in the company’s file that is available through iSelect’s website.  The ultimate objective of this phase is to receive an independent assessment affirming that the portfolio company is in good standing, that the portfolio company is operating a legitimate business, that the portfolio company has met legal and regulatory requirements, and that representations made by company principals are not materially misleading.