Keep pulling the thread on Kathleen Servidea.
A primary cybersecurity risk of AI adoption in investment management is employees inputting confidential firm or portfolio company information into unvetted, public AI models.
A key compliance risk for investment managers is misrepresenting their AI capabilities in marketing materials, drawing parallels to previous regulatory scrutiny of ESG and quantitative fund marketing claims.
Investment managers using AI must provide adequate disclosures in their Form ADV and other offering documents regarding the potential risks and benefits of the technology.
Even though it was not required to register with the SEC, the internal asset manager at Partner Re voluntarily created a compliance program that adhered to the standard of a registered investment advisor.
Gallatin Point Capital, a private investment firm founded in 2017, has approximately $5 billion in assets under management.
Gallatin Point Capital is currently in the process of raising its third commingled fund.
Gallatin Point Capital's investment strategy focuses on financial institutions, including insurance companies, insurtech, fintech, and banks, often utilizing a minority participating preferred equity structure.
Gallatin Point Capital adopted the SEC's new marketing rule in November 2022, which required a major update to its compliance program and all marketing materials.
Kathleen Servidea is in the process of creating a formal AI policy for Gallatin Point Capital.
Gallatin Point Capital has been pitched an AI platform that helps streamline marketing reviews by automatically suggesting footnotes and flagging potential compliance issues under the SEC's marketing rule.
Gallatin Point Capital uses a third-party firm to conduct extensive due diligence on all vendors, a process that includes cybersecurity assessments, business continuity planning, and financial health reviews.
Kathleen Servidea predicts that operational due diligence (ODD) checklists from LPs will eventually include a significant section focused on a General Partner's use of AI.