Wed, May 9, 2012

Duff & Phelps Announces Independent Broker-Dealer Due Diligence Practice

Duff & Phelps Corporation (NYSE: DUF), a leading independent financial advisory and investment banking firm, has established an Independent Broker-Dealer Due Diligence (IBDDD) practice. The practice provides a decision-support tool that goes beyond legal research to analyze, corroborate and verify sponsors’ claims related to strategy, financial stability, operations, regulatory compliance, historical performance, key individual backgrounds as well as valuation and existence of assets.

The practice operates within Duff & Phelps’ Alternative Asset Advisory business, which works with more than 50% of top-tier private equity firms and hedge funds. The IBDDD team relies on the experience and resources of the Operational Risk Due Diligence practice, which provides institutional investors with independent assessments and diligence relating to some of the world’s largest hedge funds and private equity firms . In addition, the IBDDD team will leverage Duff & Phelps professionals around the globe who specialize in such areas as:

  • Real Estate Services. Duff & Phelps provides a range of services related to real estate, with an extensive team of professionals and appraisers licensed in all 50 states; this team reviews over 1,000 transactions per quarter;
  • Energy and Mining Industry. Duff & Phelps covers all major U.S. production basins; an extensive team within the Portfolio Valuation business values in excess of 225 illiquid energy positions per quarter;
  • Machinery and Equipment Valuation. Duff & Phelps performs valuation work on machinery and equipment in virtually every industry; in 2011, this group worked on 400 engagements for 308 unique clients;
  • Portfolio Valuation. Duff & Phelps works with private equity firms, hedge funds, business development companies, limited partners, corporations and pension and endowment funds by delivering objective valuation advices leveraging the largest valuation practice in the world valuing in excess of 2,000 illiquid/private positions per quarter.
  • Complex Asset Solutions. Duff & Phelps provides sophisticated financial processes and quantitative models for investments having limited or no active markets, such as structured credit securities or complex derivatives.
  • Fraud, Forensic and Investigative Services. Duff & Phelps thoroughly researches and provides background on key individuals, organizations and assets by leveraging professionals from the firm’s Dispute Consulting business.

Duff & Phelps also provides IBDDD reporting services to address current and proposed regulatory mandates regarding dividend sustainability, as well as client statements pricing and valuation.
“Faced with increasing scrutiny from investors and regulators, we believe the IBD channel should have access to the most comprehensive research that incorporates all elements of proper due diligence commonly employed in the institutional channel – and Duff & Phelps is uniquely positioned to provide this,” said Wesley Tellie, a Director of Duff & Phelps’ IBDDD business. “We draw on our firm’s comprehensive suite of financial, operational, investigative and valuation-related services, going beyond a rehash of the prospectus to more thoroughly examine the underlying aspects of the sponsor and investment opportunity. Further, we have the scale necessary to deliver most due diligence reports in about six weeks or less. These benefits save clients a significant amount of money while providing a meaningful institutional decision support tool that ultimately helps broker dealers drive sound decisions.”

Clients have trusted Duff & Phelps to provide advice on numerous complex, high-stakes matters; previous engagements include service as financial advisor to the Examiner in the Lehman Brothers Bankruptcy; valuation advisor to the European Commission; valuation advisor for the U.S. Congressional Oversight Committee’s Troubled Asset Relief Program (TARP); and expert witness and financial restructuring services for several confidential matters involving alternative investments, structured products, fraud and other complex issues.

“When clients engage Duff & Phelps to provide IBDDD services, they are partnering with an entire institution whose reputation rests solidly on transparency and accountability,” said Chris Franzek, leader of the Portfolio Valuation practice, part of Duff & Phelps’ Alternative Asset Advisory business. “We are free of conflicts and commercial dependency on any industry or sector, which enhances both the independence of our research and the quality of the conclusions that we ultimately draw in our reports. Further, we never agree to validate a valuation or other service performed by a Duff & Phelps professional – so our work is reliably free of conflicts and supportable in even the most rigorous legal, regulatory and commercial contexts.”

About Duff & Phelps
As a leading global financial advisory and investment banking firm, Duff & Phelps balances analytical skills, deep market insight and independence to help clients make sound decisions. The firm provides expertise in the areas of valuation, transactions, financial restructuring, alternative assets, disputes and taxation, with more than 1,000 employees serving clients from offices in North America, Europe and Asia. Investment banking services in the United States are provided by Duff & Phelps Securities, LLC; Pagemill Partners; and GCP Securities, LLC. Member FINRA/SIPC. M&A advisory services in the United Kingdom and Germany are provided by Duff & Phelps Securities Ltd. Duff & Phelps Securities Ltd. is authorized and regulated by the Financial Services Authority. Investment banking services in France are provided by Duff & Phelps SAS. For more information, visit (NYSE: DUF)