Wire security becomes an ODD issue for real estate allocators
by Todd Sorrel
Institutional allocators have gotten serious about operational due diligence (ODD). Investment committee structure, team stability, compliance documentation, legal review — the standard ODD questionnaire now covers most of what a manager’s operational risk profile looks like. But one subject most questionnaires do not always address is the specific mechanics of how that manager moves capital: how distributions get wired, how counterparty banking details are verified before a transfer executes, and what documentation exists to prove a wire went where it was supposed to go.