The investment business is inherently risky. Decisions aren’t to be made lightly. And when considering where to put your money, you want to be sure it’s a sound opportunity. In 2018, KeyNorth was called upon to undertake enhanced due diligence for an investment fund. A business in the ever-growing cannabis sector was seeking funding and the fund in question wanted to thoroughly examine the background of the business’s central players.
Through open source intelligence gathering, and other investigatory methods, it was determined that an individual involved in the organization had been sanctioned by a regulator for misrepresentation. A second individual had made a series of inappropriate comments on social media, and a third was found to have been sued by previous business associates.
The red flags that were uncovered helped our client make an informed decision about accepting, rejecting or adjusting the terms of this investment deal.