professional-toolkit/skills/ddq-response-structurer/SKILL.md

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ddq-response-structurer

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

# 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.