Free private markets document template
Private Equity Fund Due Diligence Questionnaire Template
Create a private equity fund DDQ template and due diligence checklist for LPs covering strategy, team, track record, terms and operations.
01
Fund and review scope
Institutional Investment Office is evaluating a commitment to Proposed Private Equity Fund IV, managed by Private Markets Manager. The DDQ should be answered with source documents, consistent data definitions and named evidence owners.
02
Strategy and fund size
Proposed Private Equity Fund IV targets $1.5bn for a North American lower-middle-market buyout strategy. Test whether the opportunity set, team capacity and expected ownership support that scale.
03
LP mandate and portfolio fit
The proposed commitment is $40m. Stated mandate fit: Adds lower-middle-market exposure while remaining within the approved buyout allocation. Confirm look-through strategy, geography, sector, vintage and manager concentration before approval.
04
Team, governance and continuity
Document partner responsibilities, investment-committee voting, turnover, succession and key-person coverage
05
Track record and attribution
Rebuild gross and net results by deal, partner, role, realization status, fund and relevant predecessor vehicle
06
Sourcing and selection
Quantify proprietary, intermediary and sponsor-backed sourcing; provide conversion rates and representative declined deals
07
Reference programme
Complete on-list and off-list calls with executives, lenders, co-investors, former employees and portfolio-company leaders
08
Portfolio construction
18-22 platform investments, 10%-12% initial exposure per company and explicit follow-on and add-on reserves
09
Value creation and monitoring
Identify the operating resources, intervention rights, underwriting assumptions and evidence behind margin and growth plans
10
Fees, carry and net-return bridge
2.0% management fee during the investment period, 20% carry after an 8% preferred return and 100% transaction-fee offset
11
GP commitment and alignment
Confirm amount, funding source, partner allocation, fee-waiver treatment, recycling and cross-fund conflicts
12
Fund terms and LP protections
Review key-person, removal, suspension, LPAC, valuation, conflicts, extensions, MFN and reporting provisions
13
Operational due diligence
Verify fund administrator, auditor, counsel, valuation policy, cash controls, cybersecurity, compliance and business continuity
14
Cash flows and liquidity
Model capital calls, management fees, recycling, distributions, subscription-line effects and unfunded exposure under downside cases
15
Open items and conditions
Complete two off-list references, reconcile one partially realized attribution case and receive the final side-letter draft
16
Preliminary recommendation
Proceed only after the open items are resolved and the final terms remain within policy