ILPA DDQ Question Bank

Please describe your complete operational infrastructure, including fund administrator, auditor, legal counsel, prime broker/custodian, and technology platforms. For each service provider, describe the selection process, SLA terms, and how performance is monitored.

Why it's hard: Requires details from 5+ vendor contracts, SLAs, and evaluation records

Describe your firm's cybersecurity program in detail, including your Written Information Security Policy (WISP), access controls, data encryption standards, incident response plan, penetration testing schedule, and any third-party certifications (SOC 2, NIST, ISO 27001).

Why it's hard: Requires IT, compliance, and management coordination across WISP, IR plan, and certifications

Describe your firm's compliance program, including SEC registration status, Form ADV disclosures, personal trading policies, material non-public information (MNPI) barriers, regulatory examination history, and any enforcement actions or material litigation.

Why it's hard: Requires CCO involvement, legal sensitivity around exam history and enforcement

Detail your valuation policy and process, including adherence to ASC 820 (fair value hierarchy), valuation committee composition and meeting frequency, use of third-party valuation agents, treatment of early-stage/pre-revenue investments, and write-down/write-off procedures.

Why it's hard: Most technically complex DDQ section — requires ASC 820 expertise, val committee records, and methodology documentation

Describe your ESG integration approach and DEI initiatives, including screening methodologies, monitoring frameworks, ESG KPIs, alignment with TCFD/SASB/PRI, and workforce demographic data including diversity metrics at the investment team and leadership levels.

Why it's hard: Many firms are still building ESG/DEI programs — requires HR, investment, and operations coordination

Provide complete details on fund economic terms, including management fee calculation methodology and basis, carried interest structure and waterfall mechanics, GP commitment amount and form, clawback provisions, portfolio company fee offsets, and any side letter provisions affecting economics.

Why it's hard: Requires precise LPA knowledge — investors scrutinize every term, and errors destroy credibility

Describe your risk management framework, including policies for concentration risk, portfolio diversification, leverage usage, currency exposure, liquidity management, and stress testing methodologies.

Why it's hard: Spans investment, operations, and compliance teams — requires synthesizing multiple policy documents

Describe all actual and potential conflicts of interest, including allocation policies for co-investments, treatment of affiliated transactions, fee allocation across funds, LPAC composition and charter, and how conflicts are identified, disclosed, and managed.

Why it's hard: Most politically sensitive DDQ section — involves allocation, LPAC governance, and legal disclosure

Provide detailed team biographies with investment attribution, including prior fund performance track records, team tenure and turnover history, compensation structure and alignment, key person provisions, and succession planning.

Why it's hard: Contested attribution across partners, requires HR and legal review of comp and succession

Describe your Business Continuity Plan (BCP) and Disaster Recovery (DR) plan, including pandemic preparedness, remote work capabilities, management succession protocols, IT recovery procedures with RTO/RPO targets, BCP testing results, and insurance coverage.

Why it's hard: Spans IT, legal, HR, and operations — requires validated BCP test results and insurance details