Team and Job Description: BXMA's Business and Financial Evaluation ("BFE") Team is primarily responsible for performing initial and ongoing operational due diligence of hedge fund and asset management firms with whom BXMA partners or invests. BFE performs over 170 operational due diligence meetings per year across organizations of various size, institutionalization, investment strategy and geographic location. BFE evaluates firms based upon all non-investment aspects of their business, focusing on business viability, operational, technology, compliance, and other risks associated with managing an alternative investment firm.
The BFE Team uses a collaborative and consultative approach for its pre-investment and ongoing diligence efforts, developing strong partnerships with key professionals at each underlying investment manager, including the COO, CFO, General Counsel, Compliance Officer, Chief Technology Officer, and Marketing and Investor Relations personnel. BFE works closely with investment research and other functional teams across BXMA throughout the diligence process to evaluate investments for suitability and to monitor the ever-changing industry landscape.
An Analyst is assigned coverage responsibilities for several third-party investment managers with whom BXMA invests, or is considering an investment. Through structured training, self-directed research and an apprenticeship-like model, an Analyst is expected to develop and expand their technical knowledge required to carry out operational due diligence responsibilities for BXMA's various investment platforms referenced in the Business Unit Overview. The role requires an Analyst to collect and assess information about investment managers and their funds to identify and mitigate potential non-investment-related risks. An Analyst should have sufficient technical understanding of investment strategies and financial instruments to adequately perform due diligence. The role requires critical thinking, intellectual curiosity, and strong written and verbal communication skills. An Analyst will operate in a team setting across the BFE Team and various functional teams more broadly across BXMA.
Responsibilities: - Conduct initial and ongoing operational due diligence reviews of third-party investment managers with which BXMA invests or is considering an investment.
- Lead due diligence meetings with senior manager personnel to evaluate operational infrastructure, governance, internal controls, compliance programs, valuation practices, technology, cybersecurity, business continuity planning, and other key operational risk areas.
- Serve as the primary diligence contact for an assigned portfolio of managers, leading ongoing diligence and monitoring activities and coordinating with relevant internal stakeholders, including Investment Strategy, Legal, Operations, Risk, and Compliance teams.
- Review and analyze due diligence materials, including due diligence questionnaires, regulatory filings, audited financial statements, offering documents, investor communications, marketing materials, and internal policies and procedures.
- Identify operational risks, control gaps, and infrastructure deficiencies, and work with managers to implement enhancements aligned with industry best practices and BXMA operational due diligence standards. Monitor remediation efforts and proactively communicate material developments, risks, and recommendations to BXMA senior personnel.
- Perform independent verification procedures, including service provider confirmations, asset verification exercises, and background investigations of key manager personnel.
- Conduct due diligence on critical third-party service providers, including fund administrators, auditors, prime brokers, technology vendors, compliance consultants, and other firms supporting manager operations.
- Produce comprehensive written due diligence reports, risk assessments, investment memoranda, monitoring updates, client responses, and other analytical deliverables that clearly articulate key findings, strengths, risks, and recommendations for investment decision-makers. Success in the role requires exceptional written communication skills and the capability to synthesize complex information into clear, concise, and actionable conclusions.
- Monitor existing manager relationships and assess the impact of material business developments, organizational changes, regulatory matters, operational incidents, and other emerging risks, documenting conclusions and recommendations through periodic monitoring reports and other written communications.
- Respond to internal and client due diligence requests by preparing analyses, presentations, and written materials, and participate directly in client discussions when appropriate.
- Collaborate with investment professionals and other internal stakeholders to support investment underwriting and ongoing manager oversight.
- Develop expertise on industry trends, regulatory developments, and emerging operational risks through independent research, engagement with industry participants, and attendance at conferences and training programs.
- Contribute to team development through technical knowledge sharing, support of special projects, benchmarking exercises, process improvements, industry research initiatives, internal training, and strategic efforts designed to enhance the effectiveness and scalability of the operational due diligence program.
- Leverage and evaluate emerging technologies, including data analytics and artificial intelligence tools, to enhance the efficiency, scalability, and rigor of the due diligence process while maintaining appropriate professional skepticism, independent judgment, and quality standards.
Qualifications: - 1+ years of professional experience.
- Preferred experience within a traditional or alternative asset management firm, hedge fund administrator, prime broker, public accounting firm, financial consulting practice, or law firm's asset management practice.
- Knowledge of hedge fund structures, terms, operations, accounting, valuation, trade lifecycle, and regulatory/compliance topics.
- Strong analytical and critical thinking skills.
- Exceptional written and verbal communication skills, including experience producing professional reports, analyses, memoranda, or other business writing.
- Demonstrated professional judgment, intellectual curiosity, and attention to detail.
- Strong work ethic, self-motivation, and capability to manage multiple priorities in a fast-paced environment.
- Excellent organizational, prioritization, and time management skills.
- Highly collaborative and team-oriented, with the capability to build effective relationships across internal and external stakeholders.
- Willingness to occasionally travel domestically and internationally as business needs require.
The duties and responsibilities described here are not exhaustive and additional assignments, duties, or responsibilities may be required of this position. Assignments, duties, and responsibilities may be changed at any time, with or without notice, by Blackstone in its sole discretion.
Expected annual base salary range:$110,000 - $125,000
Actual base salary within that range will be determined by several components including but not limited to the individual's experience, skills, qualifications and job location. For roles located outside of the US, please disregard the posted salary bands as these roles will follow a separate compensation process based on local market comparables.
Additional compensation and benefits offered in connection with the role consist of comprehensive health benefits, including but not limited to medical, dental, vision, and FSA benefits; paid time off; life insurance; 401(k) plan; and discretionary bonuses. Certain employees may also be eligible for equity and other incentive compensation at Blackstone's sole discretion.
