In light of the Bernard Madoff fiasco, the need for risk management has received a lot of attention. Hedge funds must face the need to tighten up their risk and compliance practices at a time when building out strong internal functions may be hard. The former chief operating officer for Pacific Alternative Asset Management Co. Patricia Watters and Mason Snyder of Deloitte & Touche's regulatory and capital markets practice sense opportunity. They have formed a risk management firm, Catalina Partners, at what some might view as an ideal time, reports Hedgefund.net. 

The Madoff affair exposed the lengths to which some funds will go to paint their operations as legitimate. Most smaller funds do not have the resources for a deep risk undertaking. Catalina Partners sense opportunities beyond fund due diligence, especially in the area of future regulations. We'll see how the service offering evolves, but one could easily envision an IT offering. My guess is that we'll see others, boutiques as well as big consultancies, tap this opportunity.  

For more:
- here's the article from Hedgefund.net

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