DDQ
A DDQ is a structured questionnaire LPs use to evaluate investment process, risk controls, and operations.
Definition
A DDQ is an allocator’s standardized diligence format covering investment strategy, portfolio construction, risk management, team, compliance, valuation, service providers, and business stability. It forces precision and consistency—LPs compare DDQ answers across managers to identify gaps and inconsistencies. Allocator Context Many institutions cannot recommend a manager without a complete DDQ because IC memos and compliance reviews depend on it. DDQs also serve as audit trails: what the manager said during diligence versus what occurred later. Decision Authority DDQ quality directly affects IC readiness. Incomplete or inconsistent DDQs create delays and increase perceived risk. Some allocators will deprioritize managers who can’t respond professionally and consistently. Why It Matters for Fundraising A strong DDQ response is not “salesy.” It’s factual, consistent, and documented. Managers who build a reusable, high-quality DDQ pack reduce fundraising workload and increase close rates across the pipeline. Key Takeaways A core institutional diligence requirement Consistency and precision matter more than tone Drives IC memo quality and timing Weak DDQs slow approvals and reduce trust