Due Diligence
Due diligence covers investment process, performance drivers, risk management, team stability, and operational controls. It validates whether outcomes are repeatable and whether governance standards meet allocator requirements.
Definition
Due diligence covers investment process, performance drivers, risk management, team stability, and operational controls. It validates whether outcomes are repeatable and whether governance standards meet allocator requirements. Allocator Context Institutional diligence is often multi-layered (investment + operational). Family offices may run lighter diligence but still focus on trust, transparency, and alignment. Decision Authority Diligence findings typically feed into IC approvals. Red flags in ops, compliance, or key-person risk can override performance considerations. Why It Matters for Fundraising The fastest way to lose momentum is missing diligence basics: clear attribution, repeatable process, operational readiness, and consistent messaging across materials. Key Takeaways Not just performance—process and ops matter IC approvals depend on diligence evidence Operational risk is a frequent blocker Consistency across docs is critical