AI-Augmented Due Diligence
Polar Night Capital provides AI-augmented investment research and due diligence services to institutional investors with a focus on Alternative Investments and Private Market strategies.
Polar Night Capital GmbH provides its services in investment brokerage and investment advice in financial instruments within the meaning of Section 2, Clause 2 No. 3 and 4 of the German Securities Act (Wertpapierinstitutsgesetz; "WpIG") as "Tied Agent" exclusively for the account and under the liability of AHP Capital Management GmbH, Weissfrauenstrasse 12-16, 60311 Frankfurt am Main.
About us
Polar Night Capital (PNC), founded in 2024 in Frankfurt, Germany, is a specialized investment company that combines an AI-augmented investment process with deep expertise in Alternatives and Private Markets. PNC partners with professional investors by providing bespoke research and due diligence services. Our primary focus is specialized strategies, such as alternative credit and asset-backed credit as well as hedge funds and other private markets strategies. The AI-powered diligence tool ICEBERG DD© is embedded in the investment process of PNC, allowing the team to systematically transform unstructured information into investment intelligence. The team of PNC has deep expertise within the alternative investment industry and has built-up a broad network among best-in-class fund managers, institutional business partners and professional investors. The company is regulated by the German Federal Financial Supervisory Authority (BaFin) as a Tied Agent to AHP Capital Management.
Services to Professional Investors
Polar Night Capital is dedicated to supporting professional investors as they navigate the alternative investment market and thoroughly evaluate specialized investment strategies. The PNC team has implemented an AI-augmented investment process that combines deep expertise in Alternatives and Private Markets with a strong understanding of GP and fund selection standards, as well as the specific allocation requirements of professional investors.
AI-Augmented GP & Fund Due Diligence
Polar Night Capital has built-up extensive expertise in due diligence and evaluation of GPs and alternative investment funds. Prior to launching PNC, the founder has led or co-led numerous fund searches and assessments, with >150 fund investments completed across Alternatives and Private Markets strategies, such as Private Equity, Real Estate, Private Credit and Hedge Funds.
Initial LP & Fund Assessment
AI-augmented quantitative and qualitative assessment of GPs and Funds utilizing the AI-powered system ICEBERG DD©. Preparation of Initial Analysis Reports pointing-out critical risks and relevant follow-up items.
GP & Fund Investment Due Diligence
Holistic quantitative and qualitative assessment leveraging the AI-powered system ICEBERG DD© and human expert review, evaluating key strengths and main investment-related risks of GPs and Funds. Preparation of a comprehensive Investment Due Diligence Report in line with institutional market standards and presentation of recommendations.
GP & Fund Operational Due Diligence
Holistic operational assessment leveraging the AI-powered system ICEBERG DD© and human expert review, evaluating the operational set-up, processes and main operational risks of GPs and Funds. Preparation of a comprehensive Operational Due Diligence Report in line with institutional market standards and presentation of recommendations.
AI-Powered Investment Research
Polar Night Capital has deep knowledge of alternative investment asset classes, the implications on the existing portfolio of institutional investors and recent investment trends. The advisory services are bespoke and specialized to the investors’ requirements and range from research input on specific asset classes, fund terms and structures as well as sourcing of the investment universe and screening of GPs and investable funds.
Asset Class Research
Preparation of research & insights on Alternative Investments asset classes, terms & structures to determine relevant investment strategies in line with the investor’s requirements.
Mandate Profile
Definition of Mandate Term Sheet and preparation of the investment universe consisting of relevant GPs and investable Funds in line with the investor’s requirements.
GP & Fund Sourcing & Screening
Quantitative & qualitative screening of the investment universe using the AI-powered system ICEBERG DD©. Initial contact with GPs, preparation of Screening Report and proposal of Fund Long-List.
AI-Powered Monitoring
AI-powered monitoring of relevant performance metrics, exposures and KPIs against pre-defined targets, benchmarks and investor requirements using system ICEBERG DD©.
GP & Fund Scorecard
AI-supported evaluation of long-term return targets and relative performance vs. peers & benchmarks. Monitoring of changes within the investment philosophy & investment processes, turnover of investment personnel and operational set-up. Evaluation of GP responsiveness and quality of reporting documents. Summary in GP & Fund Scorecard and presentation of recommendations.
ICEBERG DD© - AI-Augmented Investment Process
PNC has developed ICEBERG DD©, an AI-augmented due diligence system that integrates a structured database, AI-powered document analysis, and human expert evaluation. ICEBERG DD© enables systematic assessment of GPs and alternative investment strategies by identifying key risks and transforming unstructured information into actionable investment intelligence.
Looking below the surface:
In-depth due diligence requires significant expertise and time. AI tools help allocators work more efficiently, uncover deeper insights, and make better-informed decisions.
1. Sophisticated Database:
The engine room of the ICEBERG DD© tool, comprises 1,000+ pre-defined prompts across diligence topics.
The assessment is tailored to asset classes and investment strategy types and builds on PNC’s track-record in alternative fund selection.
2. AI-Model Analysis:
ICEBERG DD© processes the prompt library on uploaded GP documents and analyst notes, extracting key information and automatically mapping it to the relevant diligence topics.
Outputs are systematically stored in a knowledge base, creating comparability across GPs and funds and building institutional investment intelligence. Investor-specific outputs are generated such as Screening Reports, Long-List Comparison and Operational Risk Overview.
3. Expert Assessment:
PNC investment experts evaluate AI-model results in line with alternative investment industry practice, rating all diligence topics and documenting follow-up questions.
Expert Assessments are delivered as comprehensive reports, such as Investment Due Diligence or Operational Due Diligence, providing a structured and detailed basis for decision-making.
Key Differentiators
Alternatives Expertise
ICEBERG DD© is built on over a decade of institutional fund selection experience, supported by a continuously evolving library of >1,000 prompts tailored to Alternatives & Private Markets.
AI-Augmentation
Designed to empower investment teams by strengthening diligence processes and enhancing informed decision-making—without replacing human judgment.
Process Efficiency
Automated extraction and structuring of information, reducing manual work and freeing up time for investment professionals to focus on high-value analysis.
Institutional Intelligence
Systematical storage of outputs in an internal knowledge database, enabling institutional investment intelligence memory and improved comparability across GPs & Funds.
Infrastructure & Data Protection
Dedicated & closed cloud environment hosted in Germany and daily back-ups. Fully compliant with European GDPR & German DSGVO.
Team
Polar Night Capital (PNC), founded in 2024 in Frankfurt, Germany, is a specialized investment company that combines an AI-augmented investment process with deep expertise in Alternatives and Private Markets.
Eugen Leichner, Founder
Eugen Leichner has over a decade of experience in institutional investment management, with a focus on fund and manager selection across Alternative Investments and Private Markets. Eugen is the Founder and Managing Partner of Polar Night Capital (PNC), a regulated investment firm providing bespoke investment research and due diligence solutions to institutional investors. Prior to launching PNC, Eugen served as Investment Director in the Fund-of-Funds team at Prime Capital AG (Frankfurt, Germany). Throughout his career, Eugen has led or co-led numerous fund searches and assessments, with >150 fund investments completed across Alternatives and Private Markets strategies, such as Private Equity, Real Estate, Private Credit and Hedge Funds.
Do you have any questions? Please feel free to contact us!
Investment Capabilities
The team of Polar Night Capital combines an AI-augmented investment process with deep expertise in Alternatives and Private Markets. Our coverage is global with a focus on specialized strategies, such as alternative credit and asset-backed credit as well as hedge funds. Polar Night Capital has a deep understanding of investment requirements of professional investors, which allows the firm to bespoke research and due diligence services. Client references are available on request.
Private Alternative Credit
Private Credit is a fast-growing segment of the alternative investment industry with particular relevance for institutional investors providing attractive risk-adjusted returns and diversification. PNC sets its focus on specialized credit opportunities as well as asset-based private financing facilities.
Real Assets
Real Assets include the asset classes Real Estate and Infrastructure, which have been a significant part of institutional investors’ portfolios. PNC sets its focus on specialized financing strategies across the capital structure secured by real assets as well as special situations opportunities.
Private Equity
Private Equity is one of the most established asset classes within private markets, with high dispersion across sub-segments and sectors as well as between asset managers. The main focus of PNC is on specialized small- and mid-cap strategies as well as co-investments and secondary opportunities.
Liquid Alternatives
Liquid Alternatives and Hedge Fund strategies have the most flexibility in terms of investment instruments and segments being able to create a tailored exposure to specific risk factors. PNC has a focus on discretionary strategies within relative value and directional Equity and Credit strategies.
Satellite Alternatives – Alternative Private Credit
This update highlights niche private credit strategies within Satellite Alternatives that provide diversification, uncorrelated returns, and attractive risk-adjusted yields in a challenging economic climate, underscoring the need for expert manager selection and thorough due diligence.
AI-Augmented Investment Management Systems
This paper reveals how AI-driven tools combined with human expertise revolutionize private market investing by automating complex data processing and enhancing decision-making while preserving human judgment, offering a practical blueprint for next-generation allocators.
Investor Focus
Polar Night Capital acts as strategic advisor to professional investors and provides AI-augmented investment research and due diligence service.
Private Wealth
• Private Banks & Wealth Managers
• Family Offices/ HNWIs
• Investment Consultants / Advisors
Institutional Investors
• Public / Corporate Pension Funds
• Insurance Companies
• Occupational Penson Schemes
• Clerical Institutions
• Sovereign Wealth Funds
• Commercial Banks
• Fund of Fund Managers
Do you have any questions? Please feel free to contact us!
Our Values
Experience & Expertise
The team of Polar Night Capital has deep expertise within the alternative investment industry and a broad network across fund managers and professional investors. The founder, Eugen Leichner, has relevant experience of over decade working as an investment professional being responsible for investment and operational assessment of alternative investment funds.
Network and Relationships
PNC targets to create long-lasting relationships with a diverse and sophisticated pool of professional investors as well as abroad network of specialized fund managers. PNC’s clients appreciate the deep expertise, which enables the team to select fund managers with unique and attractive investment strategies and best-in-class capabilities.
Holistic Advisory Approach
Polar Night Capital offers professional, high quality and transparent services. PNC’s business practice involves a holistic approach, leveraging its AI-powered system ICEBERG DD© and the deep expertise of the team working together with global asset managers and European professional investors. The team understands the key requirements of both parties and provides customized services in line with the sophisticated standards.
AI-Augmented Investment Process
PNC developed the proprietary AI-powered diligence tool ICEBERG DD©, embedded in the investment process of PNC. An AI-enhanced diligence process reduces time spent on manual tasks, and enables systematic assessment of GPs and alternative investment strategies by identifying key risks and transforming unstructured information into actionable investment intelligence.
Contact
Weißfrauenstraße 12-16
60311 Frankfurt am Main
+49 176 4387 8817
info@polarnight-cap.com
All rights reserved © Polar Night Capital GmbH
Polar Night Capital GmbH provides its services in investment brokerage and investment advice in financial instruments within the meaning of Section 2 clause 2 no. 3 and no. 4 of the German Securities Institutions Act (Wertpapierinstitutsgesetz; „WpIG“) as tied agent exclusively for the account and under the liability of AHP Capital Management GmbH, Weißfrauenstraße 12 – 16, 60311 Frankfurt am Main. According to the legal requirements, we are obliged to provide our customers with the following information about AHP Capital Management GmbH and its investment services: MIFID Informationen – ahp-cm.com