An investment manager was considering a partnership with a newly formed private equity firm and commissioned Gryphon to conduct a comprehensive background investigation on the PE firm’s principals.
Human intelligence gathered from interviews with former colleagues of the principals revealed that despite being well connected in the industry, the subjects were not highly regarded among their peers and lacked requisite successful deal experience. In addition, one source close to the subjects described their new firm as the “land of misfit toys,” and several sources advised our client against engaging in any business relationship with the firm.
Our investigation afforded our client with a unique insight into the character and professional footprints of the subjects. Armed with this intelligence, our client was able to avoid any potential business and reputational risks associated with a potential investment.