--- title: "Due Diligence Questionnaire (DDQ) | Altss Glossary" description: "A due diligence questionnaire (DDQ) is a set of written questions, answered by an investment manager and backed by documents, on its firm, strategy, team,…" canonical: "https://altss.com/glossary/ddq" --- Glossary · Due diligence # Due Diligence Questionnaire (DDQ) A due diligence questionnaire (DDQ) is a set of written questions, answered by an investment manager and backed by documents, on its firm, strategy, team, track record, fund terms, operations, compliance and ESG, used to assess and compare managers. Publisher: Altss LLCPublished 2026-01-01Content modified 2026-10-01 ALTSS-DD-010 Every serious investor wants answers to the same basic questions before backing a fund: who owns the firm, how decisions are made, what the track record really is, how assets are valued, who the administrator and auditor are. A DDQ puts those questions in writing. Managers usually keep a standard DDQ ready for every fundraise and answer each investor's extra questions on top. ## Who writes it and who answers it Two models coexist. In the first, the manager completes a standard questionnaire, often the template of the Institutional Limited Partners Association (ILPA), and places it in the fundraising [data room](https://altss.com/glossary/data-room). In the second, an LP or its consultant sends its own questionnaire. Most fundraises involve both: a standard DDQ plus supplemental questions. ILPA built its template to cut duplication. Its overview to DDQ 2.0 says customised questionnaires of varying length, often similar in their core areas, had created an outsized administrative burden on LPs, GPs and placement agents. ILPA also states that the DDQ is not a required document and does not replace each LP's own judgement of what it needs. ## Industry templates Two industry bodies publish standard templates: ILPA and the Alternative Investment Management Association (AIMA). | Template | Edition | Scope | Access | | --- | --- | --- | --- | | ILPA Due Diligence Questionnaire 2.0, with Diversity Metrics Template | November 2021 (replacing DDQ 1.2 of 2018) | Private equity funds; 20 topics; appendices A-H | Public | | AIMA Illustrative Questionnaire for the Due Diligence of Investment Managers | 2025 edition, modular | Hedge fund, private credit and private equity managers; private-credit modules also issued under the Alternative Credit Council (ACC) brand | AIMA members | Consultants and large LPs also maintain their own questionnaires, which often map to these templates. ## What the ILPA DDQ covers ILPA DDQ 2.0 combines short yes/no questions with long-form answers across 20 topics: - Firm: general information - Fund: general information - Succession planning and key persons - Investment strategy - Co-investments - GP-led secondaries and continuation funds - Credit facilities - Investment process - Team - Alignment of interests - Market environment - Fund terms - Firm governance, risk and compliance - Track record - Accounting and valuation - Reporting - Legal - Data security, technology and third parties - ESG - Diversity, equity and inclusion Appendices list requested documents and provide data templates for team members, references, third parties and technology tools, the fund, portfolio investments, GP-led secondaries and credit facilities such as a [subscription line](https://altss.com/glossary/subscription-line). The ESG section draws on the LP responsible investment DDQ of the Principles for Responsible Investment (PRI). The reporting section asks whether the manager will provide the [ILPA Reporting Template](https://altss.com/glossary/ilpa-reporting-template) and ILPA's capital call and distribution template to all LPs. ## Using a DDQ well (LP side) - **Read for specificity.** Named owners, thresholds and procedures carry more information than policy language. - **Check consistency** with the [PPM](https://altss.com/glossary/private-placement-memorandum), the [LPA](https://altss.com/glossary/limited-partnership-agreement), [Form ADV](https://altss.com/glossary/form-adv) and the data room. Inconsistencies are findings. - **Verify** through documents, service-provider confirmations, references and [operational due diligence](https://altss.com/glossary/operational-due-diligence). A DDQ is a set of representations, not evidence. - **Compare editions.** Year-on-year changes in team, providers, policies or litigation answers show what has changed since the last fund. - **Ask only what the standard DDQ does not cover.** Re-asking ILPA questions in a bespoke format adds cost without adding information. ## Preparing a DDQ (GP side) Managers keep a master DDQ, update it at least once a year and after material changes, and have legal and compliance review it. Figures in the DDQ (assets under management, performance, team counts) should reconcile to the PPM, marketing materials and regulatory filings, and gross figures should be accompanied by the matching net figures (the rules on presenting performance in advertisements are covered under Marketing Rule). US advisers should confirm with counsel which DDQ responses are treated as advertisements. Answers age quickly: a stale DDQ in a data room is a common source of inconsistencies. ## Not the same as - Request for Proposal: A request for proposal (RFP) is issued by an asset owner or consultant to invite managers to compete for a defined mandate, usually with scoring rules and deadlines. A DDQ gathers diligence information on a manager already under consideration. - [Due Diligence](https://altss.com/glossary/due-diligence): Due diligence is the whole investigation. The DDQ is the manager's written input to it. - [Private Placement Memorandum (PPM)](https://altss.com/glossary/private-placement-memorandum): The PPM is the offering document with risk disclosures and terms. The DDQ answers investors' diligence questions in a question-and-answer format. - [Data Room](https://altss.com/glossary/data-room): The data room is the repository of documents; the DDQ is usually one of the documents in it, with cross-references to the rest. ## Common mistakes - Treating a polished DDQ as evidence of operational strength. - Leaving an out-of-date DDQ in the data room, so answers contradict the PPM or Form ADV. - Answering with generic policy language instead of specific procedures, names and thresholds. - LPs sending a bespoke questionnaire that repeats the ILPA questions in a different order. - Ignoring the appendices, which hold the structured data (team, references, portfolio, credit facilities) that is easiest to verify. ## Edge cases - Continuation-vehicle and GP-led secondary processes use ILPA DDQ 2.0's dedicated topic and appendix G, alongside the deal-specific information package. - A first-time fund has no fund-level track record; the DDQ track-record section then describes prior-firm deals, and attribution must be verified separately. - Hedge fund DDQs (for example AIMA's) give more weight to trading, liquidity, prime brokerage and counterparty risk than private equity DDQs. ## Questions ### Is the ILPA DDQ mandatory? No. ILPA states the DDQ is not a required document for GPs and does not replace each LP's own diligence needs. Its value comes from wide voluntary use. ### How often should a manager update its DDQ? Common practice is at least annually and whenever something material changes, such as team departures, new service providers, regulatory events or a new fund. ## External standards | Standard | Relation | Note | | --- | --- | --- | | ILPA DDQ 2.0 (Full questionnaire, 20 topics, appendices A-H) | equivalent | | | AIMA Illustrative DDQ (2025) (Modular questionnaire) | equivalent | | ## Sources - [ILPA Due Diligence Questionnaire 2.0 (and Diversity Metrics Template)](https://ilpa.org/wp-content/uploads/2021/11/ILPA-DDQ-2.0.pdf). Institutional Limited Partners Association, ILPA, Version 2.0, November 2021 (v1.1 dated October 2013). Status: Current (checked 2026-10-01). Cover (Updated November 2021); p. 2 (table of contents, disclaimer); Overview p. 3; Q16.8-16.9 — supports: Edition, purpose, non-mandatory status, 20 topics, appendices, prior version 1.2 (2018), ESG link to PRI, reporting template questions - [AIMA Illustrative Questionnaire for the Due Diligence of Investment Managers (2025 edition)](https://www.aima.org/article/presenting-the-2025-edition.html). Alternative Investment Management Association, AIMA, 2025 edition (modular). Status: Current; full questionnaire available to AIMA members only (checked 2026-10-01). 2025 edition announcement — supports: Modular AIMA questionnaire covering hedge fund, private credit and private equity managers; ACC-branded private credit modules; members-only access ## Related terms 7 terms - [Operational Due Diligence (ODD)](https://altss.com/glossary/operational-due-diligence) - [Data Room](https://altss.com/glossary/data-room) - [Private Placement Memorandum (PPM)](https://altss.com/glossary/private-placement-memorandum) - [ILPA Reporting Template](https://altss.com/glossary/ilpa-reporting-template) - [Form ADV](https://altss.com/glossary/form-adv) - [Fundraising (Private Fund Fundraising)](https://altss.com/glossary/fundraising) - [Due Diligence](https://altss.com/glossary/due-diligence) ## Referenced by 1 term - [Placement Agent](https://altss.com/glossary/placement-agent) ## Concept record Concept ID ALTSS-DD-010 Classification Due diligence · Fundraising & investor relations Topics Due diligence · Fundraising & investor relations Version 2.0.0 Last reviewed 2026-10-01 Structured data [JSON](https://altss.com/reference/concepts/ddq.json) ## Canonical URL https://altss.com/glossary/ddq