Due Diligence Questionnaire

The ILPA Due Diligence Questionnaire (ILPA DDQ) was designed to ease the administrative burden placed on private equity LPs and GPs by standardizing the most frequent and important diligence questions posed by investors.

With increased focus on issues related to alignment of interest, governance, and transparency, the level of detail required by LPs for their fund diligence process has grown. Without question-standardization, the industry faces a proliferation of custom questionnaires, requiring GPs to provide customized answers to each. The ILPA DDQ simplifies this process, freeing up manager resources to provide more in-depth responses, as needed.

In September 2018, ILPA published an expanded version of the DDQ to include elements to support the advancement of diversity and inclusion within the private equity industry. This expand DDQ version 1.2 includes a template to measure the ethnic and gender diversity at GP firms as well as a set of questions to enhance understanding of a GP’s policies and procedures in areas such as hiring, promotions, family leave, mentoring and harassment and discrimination.

The ILPA DDQ 1.2 includes the following topics:

  1. General Firm Information
  2. General Fund Information
  3. Investment Strategy
  4. Investment Process
  5. Team
  6. Alignment of Interest
  7. Market Environment
  8. Fund Terms
  9. Firm Governance/Risk/Compliance
  10. ESG
  11. Track Record
  12. Accounting/Valuation/Reporting
  13. Legal/Administration
  14. Diversity and Inclusion

A red lined version of the ILPA DDQ 1.2, which shows the specific changes made from Version 1.1, can be viewed here.

ILPA welcomes feedback on our standard DDQ and encourages industry stakeholders to share their input with us.