LP Decision Cycle
An LP decision cycle is the end-to-end process and timeline an allocator follows to approve a fund commitment or investment.
Allocator relevance: Knowing the cycle determines outreach timing—decision cycles define when diligence starts, who must be aligned, and how long it takes to close.
Expanded Definition
Decision cycles vary widely by allocator type. Institutions often have formal IC calendars, board approvals, and policy constraints. Family offices may have faster cycles but more concentrated authority and less predictable scheduling. A decision cycle typically includes: initial screen, manager meetings, DDQ/ODD, reference checks, IC memo, approval, legal review, and subscription execution.
In allocator intelligence, capturing the real cycle (not the stated one) improves conversion and reduces friction.
Decision Authority & Governance
Governance defines cycle steps, required approvals, and exception policies (e.g., fast-track co-investments). Decision authority mapping is inseparable: cycles are driven by who approves and how information flows.
Common Misconceptions
- All LPs decide in 4–8 weeks.
- Family offices are always fast.
- If the LP likes the manager, the cycle compresses automatically.
Key Takeaways
- Decision cycles drive timing and materials needs.
- Map cycle by allocator type and ticket size.
- Decision chain accuracy reduces wasted outreach.