Reference Checks
Reference checks are structured conversations with people who have worked with or observed a manager, team, or company to validate claims and surface risks.
Allocator relevance: One of the highest-signal diligence steps—reveals how a manager behaves in real situations, not just in decks.
Expanded Definition
Reference checks validate track record attribution, team dynamics, decision-making quality, integrity, and behavior under stress. They can include former colleagues, co-investors, portfolio executives, LPs, service providers, and industry peers. Strong references include concrete examples; weak references are vague or overly polished.
Allocators use references to confirm or disconfirm underwriting narratives and to understand operational maturity.
How It Works in Practice
Teams build a reference map, conduct calls, and document insights. They cross-check consistency across sources and pay attention to omissions or patterns (e.g., recurring complaints about reporting or ethics).
Decision Authority and Governance
Governance requires structured documentation and consistency—references should be comparable across managers and tied to decision criteria.
Common Misconceptions
- References are biased and useless (they can be, if done poorly).
- Only GP-provided references matter (third-party and backchannel matter more).
- One or two references are enough.
Key Takeaways
- Reference checks validate behavior, not marketing.
- Diversity of sources increases signal.
- Document patterns and contradictions.