Reference Checks
Reference checks are third-party conversations used by allocators to validate a manager’s track record, behavior, and operational maturity.
Definition
Definition Reference checks are part of diligence where allocators speak with former colleagues, portfolio company executives, co-investors, LP peers, service providers, or other market participants. The goal is to validate what documents cannot fully prove: decision-making behavior, integrity, governance discipline, and how the team performs under pressure. Allocator Context Institutions treat references as credibility tests. They pay attention to consistency across multiple sources and to how the GP handles difficult periods (drawdowns, team changes, failed deals). Allocators also evaluate whether the GP provides curated references only or is comfortable with broader market triangulation. Decision Authority Reference outcomes can influence IC confidence, especially for emerging managers or newer teams. Negative reference themes can block approvals even when performance looks strong on paper. Why It Matters for Fundraising Good managers don’t “win” references through scripting; they win through behavior over time. Fundraising improves when the GP has clean reputation signals, strong operating relationships, and transparent communications. Key Takeaways Validates what cannot be fully proven in documents Behavior under stress is a major focus Especially important for emerging managers Reputation is a durable fundraising asset