Risk Screening + Due Diligence

Transactional Diligence with Geopolitical Risk

• PE firm client was looking for data on risks in Madagascar to help assess the problems with a potential acquisition there.

• RANE provided aggregated, historical risk data for Madagascar that revealed numerous areas of concern and potential operational, reputational, security, political and financial risk, and then completed some additional research into the areas of particular concern highlighted by the client.

• The client was able to understand the risk factors that existed in a certain jurisdiction as a jumping off point for deeper research, and was able to make a more informed decision about the impact of acquiring the potential business in Madagascar.

ESG Considerations

• Where appropriate, our due diligence includes a comprehensive ESG assessment, including identification of ESG concerns for company, subsidiaries, supply chain, and portfolio companies under parent/investor control.

• RANE recently created a deep dive report into the ESG risks of doing business in Saudi Arabia for both companies and investors for a client. The report concluded that Saudi Arabia’s fossil fuel industry dominates environmental risk, its conservative society creates social risk, and its Vision 2030 program reduces some corporate governance risk, but that more remains. The report included steps the client could take to address and mitigate these considerations.

Entity Reputational Monitoring

• A large private equity client was looking to monitor any significant events related to their large number of portfolio companies.

• RANE produced a custom brief that identified any potential reputational risks related to their investments/ portfolio companies.

• The brief has helped the firm monitor issues related to their portfolio companies’ supply chain and proactively address/ mitigate those.

• The client has also asked RANE to conduct additional research on some of the issues identified in the course of monitoring with additional advisory work.

LP Vetting and Screening

• PE client engaged RANE to support their fundraising and Investor Relations efforts by vetting potential LPs prior to onboarding them, and by identifying any potentially risk-relevant issues that could create legal, reputational, commercial or regulatory risk, especially in high risk jurisdictions.

• Once the LPs have been onboarded, RANE conducted quarterly screening to ensure there have been no new alerts related to adverse media, sanctions, or watchlists.

• RANE has provided geopolitical risk assessments for certain high-risk jurisdictions to help the investor relations team understand the risk landscape before evaluating potential LPs.