Due Diligence Questionnaire and Diversity Metrics Template

 

The ILPA Due Diligence Questionnaire is currently open for a public comment period through September 24, 2021.

Feedback is welcome from all interested parties – LPs, GPs, Fund of Funds, advisors/consultants/OCIOs, academics, industry bodies, placement agents, regulatory bodies and other third party/service providers.

To submit feedback on the draft ILPA DDQ 2.0 and the draft ILPA Diversity Metrics Template, click on the ILPA DDQ Feedback Submission Form button, complete the forms and attach your feedback – please be sure to follow the feedback instructions provided on the first page of the ILPA DDQ.

Questions may be directed to DDQFeedback@ilpa.org.

 

Downloads - All Draft Documents Are Open for Public Comment Through September 24, 2021

DRAFT Due Diligence Questionnaire 2.0 (PDF) | DRAFT Due Diligence Questionnaire 2.0 (Docx) | Summary of Changes From DDQ Verison 1.2 to 2.0 (PDF)

DRAFT ILPA Diversity Metrics Template (Excel)

 

 

ILPA DDQ Feedback Submission Form

ILPA welcomes feedback to the ILPA DDQ and Diversity Metrics Template from all interested parties. To provide feedback, please click above, complete the forms and attach your feedback.

The updates to the ILPA DDQ were made with a keen eye towards addressing the emerging areas of inquiry undertaken by LPs in their diligence processes and to ensure that the DDQ aligns with ILPA guidance released over the last several years. The Summary of Changes document highlights the changes found in the draft ILPA DDQ 2.0.

In doing so, the ILPA DDQ aims to help LPs, GPs and other interested parties operate more efficiently and effectively by standardizing the most frequent and important diligence questions posed by investors of managers.

The ILPA DDQ was first introduced in 2013; subsequent updates were made in 2016 focused on reporting in concert with the ILPA Reporting Template and reflecting PRI’s LP Responsible Investment DDQ as the ESG section. In 2018, the DDQ was updated with the introduction of a section dedicated to questions and requested documents on DEI.

The private markets industry has changed significantly since 2013, which prompted ILPA to update the DDQ to modernize the document. As the industry has meaningfully evolved, ILPA seeks to ensure that the DDQ reflects emerging practices and norms, as well as transformation in technology, operating processes and industry best practices, all while maintaining a core focus on improving transparency, governance and alignment of interest between GPs and LPs.

Given continued industry focus on ESG and DEI, ILPA has adapted the DDQ to reflect these changes as follows:

ESG:

The updated ESG section in the draft ILPA DDQ 2.0 draws on an updated version of the PRI Limited Partners Private Equity Responsible Investment DDQ. We are delighted to work closely once again with the PRI to incorporate their latest materials into the ILPA DDQ. The synchronization of the ILPA and PRI questionnaires offers opportunities for efficiency and standardization.  Click here to read more about the update process for PRI.

Please note that the ESG section within the draft ILPA DDQ 2.0 is in draft form; feedback related to the ESG section collected through the ILPA DDQ public comment period will be shared directly with PRI for consideration.

DEI:

The updated DEI section within the draft ILPA DDQ 2.0 includes several enhancements that align with prevalent areas of LP inquiry specific to DEI. Similarly, proposed changes to the ILPA Diversity Metrics Template reflect information sought by LPs, as well as information increasingly requested by LPs of GPs, informed by signatories to the Diversity in Action initiative, validated through multiple working groups and round tables focused on diversity metrics and aligned with ILPA’s recently released ESG Assessment Framework.

The ILPA Diversity Metrics Template seeks to improve upon the initial version released in 2018. The updated version features several notable enhancements, including more globally relevant designations for race and ethnicity, more inclusive information on gender/diversity by adding a nonbinary designation and additional diversity designations, simplified structure for role designations across ownership and professionals, insight into staff movement and select portfolio company level data.

In addition to robust discussions and feedback from LPs, GPs, and other interested parties, the ILPA DDQ leverages insight produced from the following efforts since 2013:

ILPA recognizes that the ILPA DDQ as written best aligns with established private equity managers. To better serve the private markets industry as a whole, ILPA is in the process of developing modules of the ILPA DDQ, in coordination with other leading industry bodies, tailored to different asset classes such as real estate, private credit and infrastructure, as well as to small and emerging managers.

Additionally, ILPA will institute a periodic review of the ILPA DDQ to better align with key developments as our industry evolves. While no concrete review timeline in specified, it is expected that future updates will take place on a more regular cadence, eliminating the need for comprehensive updates over long intervals.

 

Should you need to carry out diligence while the updated ILPA DDQ is under review, the below documents should be considered as current versions of the DDQ that will remain live until the revised and final DDQ 2.0 is released in Q4 2021.

Please make sure you do not provide feedback on the attachments below as part of the public comment period process. 

Due Diligence Questionnaire 1.2 (PDF) | Due Diligence Questionnaire 1.2 (DOCX)