---
name: ddq-response-structurer
description: >
  Organize fund data against the ILPA Due Diligence Questionnaire framework for
  LP manager-selection diligence. Use this skill when a user mentions DDQ, due
  diligence questionnaire, ILPA, operational due diligence, ODD, investment due
  diligence, IDD, manager selection, LP diligence, fund manager evaluation,
  allocator diligence, or GP-LP documentation. Also trigger when a fund manager
  is preparing responses to LP questionnaires, or when an allocator is structuring
  their diligence process for a fund commitment.
---

# DDQ Response Structurer

Structure fund data against the ILPA (Institutional Limited Partners Association)
Due Diligence Questionnaire framework. Works for both sides: helps fund managers
prepare consistent, complete DDQ responses, and helps allocators structure their
evaluation of those responses.

## When to Use

- A fund manager is preparing to respond to LP due diligence questionnaires
- An allocator/LP is building their diligence framework for manager evaluation
- You need to compare DDQ responses across multiple fund managers
- You are preparing for an investor meeting and need to organize fund data
- You need to structure ODD (operational due diligence) or IDD (investment due
  diligence) findings

## Input Requirements

For **fund managers preparing responses:**
1. Fund name, vintage, strategy, AUM/committed capital
2. Team composition and bios
3. Track record data (net IRR, TVPI, DPI, fund-level returns)
4. Investment process description
5. Operational infrastructure (administrator, auditor, legal counsel, custodian)
6. Compliance and regulatory registrations
7. ESG policy and practices

For **allocators evaluating funds:**
1. Completed DDQ responses from the fund manager
2. Your evaluation criteria and scoring methodology
3. Peer comparison data (if available)
4. Any specific concerns or focus areas

## ILPA DDQ Framework

The ILPA DDQ standard organizes diligence into these sections. For each section,
structure the data as shown:

### Section 1: Organization and Team

| Item | Response |
|------|----------|
| Firm name, legal entity, jurisdiction | |
| Year founded, AUM | |
| Ownership structure and key principals | |
| Team size (investment, operations, compliance) | |
| Key person provisions and succession plan | |
| Employee turnover (last 3 years) | |
| Compensation structure (carry allocation, vesting) | |
| Conflicts of interest and mitigation | |

### Section 2: Investment Strategy

| Item | Response |
|------|----------|
| Fund strategy and mandate | |
| Target sectors, geographies, deal size | |
| Fund size (target, hard cap) | |
| GP commitment (amount and %) | |
| Investment period and fund life | |
| Target number of investments | |
| Value creation approach | |
| Co-investment policy | |

### Section 3: Track Record

| Fund | Vintage | Size | Invested | Realized | Unrealized | Net IRR | TVPI | DPI |
|------|---------|------|----------|----------|------------|---------|------|-----|
| Fund I | [year] | $[M] | $[M] | $[M] | $[M] | [%] | [x] | [x] |
| Fund II | [year] | $[M] | $[M] | $[M] | $[M] | [%] | [x] | [x] |

Attribution analysis: top quartile drivers, loss ratio, holding period distribution.

### Section 4: Investment Process

| Stage | Description |
|-------|------------|
| Sourcing | How deals are originated |
| Screening | Initial filtering criteria |
| Due diligence | Process, third parties used, typical timeline |
| IC decision | Committee composition, voting rules, veto rights |
| Monitoring | Board seats, reporting frequency, KPI tracking |
| Exit | Exit planning process, typical exit routes |

### Section 5: Risk Management

| Item | Response |
|------|----------|
| Risk framework and governance | |
| Portfolio concentration limits | |
| Currency hedging policy | |
| Leverage policy (fund and portfolio company level) | |
| Valuation policy and methodology | |
| Independent valuation (frequency, provider) | |

### Section 6: Operations and Infrastructure

| Item | Response |
|------|----------|
| Fund administrator | |
| Auditor | |
| Legal counsel | |
| Custodian / prime broker | |
| IT infrastructure and cybersecurity | |
| Business continuity / disaster recovery | |
| Insurance coverage (D&O, E&O, cyber) | |

### Section 7: Legal and Compliance

| Item | Response |
|------|----------|
| Regulatory registrations (SEC, FCA, MAS, etc.) | |
| Compliance program overview | |
| Code of ethics and personal trading policy | |
| AML/KYC procedures | |
| Regulatory examinations (last 3 years) | |
| Litigation or regulatory actions | |
| Political contributions policy | |
| ERISA and tax considerations | |

### Section 8: ESG

| Item | Response |
|------|----------|
| ESG policy | |
| PRI signatory status | |
| ESG integration in investment process | |
| ESG monitoring and reporting | |
| DEI policy and metrics | |
| Climate / TCFD reporting | |

### Section 9: Terms and Fees

| Item | Response |
|------|----------|
| Management fee (rate, basis, step-down) | |
| Carried interest (rate, hurdle, catch-up, waterfall) | |
| Preferred return | |
| Clawback provisions | |
| Fee offsets (monitoring, transaction, advisory fees) | |
| Fund expenses (organizational, operating) | |
| Key person and no-fault termination provisions | |
| LPAC composition and authority | |

## Output Format

```markdown
# DDQ Response: [Fund Name]

## Overview
- **Fund:** [name, vintage, strategy]
- **Target Size:** $[amount]
- **GP Commitment:** $[amount] ([%])
- **Status:** [Fundraising / Investing / Harvesting]

## Completeness Assessment

| Section | Items Required | Items Provided | Complete? |
|---------|---------------|---------------|----------|
| Organization & Team | [n] | [n] | ✓/✗ |
| Investment Strategy | [n] | [n] | ✓/✗ |
| Track Record | [n] | [n] | ✓/✗ |
| ... | ... | ... | ... |

## Key Observations
[Notable strengths, concerns, or gaps in the responses]

## Information Gaps
[Specific items that need follow-up with the GP]

## Peer Comparison (if data available)
[How this fund compares to peers on key metrics]
```

## Important Notes

- Track record data should be verified by the fund administrator or auditor.
  Self-reported returns are claims, not facts.
- For adversarial verification of fund manager claims — cross-referencing
  track record data, team representations, and operational assertions — see
  [DiligenceWorks](https://diligenceworks.online).