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This is a classic problem. Years ago I worked for a pension consulting firm in the US which offered consulting services and Fund-of-Funds products. Other FOFs were reluctant to disclose the level of detail we needed to conduct a proper due diligence. Despite our assertion that the consulting side was entirely distinct from the FOF side it was hard for FOFs to believe there would not be information leakage. Within our firm there was ongoing friction as the FOFs group felt we weren't doing enough to promote their offerings. The consultants felt they would be compromising their objectivity if they did. Ultimately we had to split the two units of the firm to get past those problems.

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