Master the ILPA Due Diligence Questionnaire with our expert guide. Learn how to prepare compelling responses and build lasting investor trust.
Think of the ILPA Due Diligence Questionnaire (DDQ) as the private equity industry’s universal language for investor conversations. It creates a standardized playbook, giving General Partners (GPs) a clear way to present their firm and Limited Partners (LPs) a consistent framework for their evaluation. It essentially replaces the old, chaotic back-and-forth of one-off questions with a single, trusted format.
Imagine trying to fundraise without a common script. Every potential investor would send you their own unique, massive questionnaire. You'd be stuck answering hundreds of slightly different—but overlapping—questions, draining your time and energy. This used to be the frustrating reality for fund managers.
The ILPA DDQ was created to fix this exact problem.
The Institutional Limited Partners Association (ILPA) developed its Due Diligence Questionnaire to bring some much-needed order to the fund diligence process. The goal was simple: reduce the administrative headache for everyone involved by standardizing the most common and critical questions that investors ask. You can find all the details on the official ILPA DDQ resource page.
At its core, this document is a tool for building trust through transparency. It helps LPs compare different funds on an apples-to-apples basis. For GPs, it’s a powerful vehicle for telling their story in a comprehensive and structured way.
Here’s a glimpse of the official ILPA resource page.
As you can see, ILPA offers different versions, a clear sign that the DDQ isn’t a static form but a living document that evolves with the market.
For emerging managers, getting a handle on the DDQ is one of the first critical steps in any fundraising campaign. This isn't just a form to fill out; it's a strategic tool for crafting your narrative.
The ILPA DDQ is less about passing a test and more about telling a clear, consistent, and verifiable story about your firm, your strategy, and your team. Consistency across your DDQ, your pitch deck, and your investor calls is absolutely essential.
To get started, it helps to have a high-level view of what the DDQ is all about. The table below breaks down its role in the fundraising process.
| Aspect | Description |
|---|---|
| Who | General Partners (GPs) are the ones who complete the questionnaire. Limited Partners (LPs), like pension funds and endowments, are the ones who review it. |
| What | It's a comprehensive set of questions that covers every facet of a fund—from investment strategy and team bios to track record and back-office operations. |
| Why | The main goals are to standardize the diligence process, increase transparency, and build investor trust and confidence in an efficient way. |
| When | LPs typically request the DDQ during the fundraising process, usually right after an initial introductory meeting shows promise. |
This framework gives both sides of the table—the GP and the LP—a solid foundation to build upon for a more productive and transparent relationship.
Before the ILPA Due diligence Questionnaire became the industry standard, fundraising was a bit of a mess. It was chaotic, inefficient, and a huge headache for everyone involved. Think of it like this: you're trying to run a marathon, but every single race official has their own unique rulebook and a different measurement for what constitutes a mile. That's what it was like for General Partners (GPs) for years.
Each Limited Partner (LP) had their own custom questionnaire, often hundreds of questions long. A GP could easily spend weeks drowning in paperwork, answering what were essentially the same questions phrased slightly differently for dozens of potential investors. This wasn't just tedious; it was a massive administrative drain, hitting emerging managers with small teams the hardest.
For LPs, this lack of a common language made it nearly impossible to do a true apples-to-apples comparison between funds. They were left to manually map and translate data from wildly different formats, a process that ate up valuable time and was ripe for error.
The arrival of the ILPA DDQ was a game-changer. It gave both LPs and GPs a single, universal framework to work from, finally leveling the playing field. It was like the financial world collectively agreeing to use the same type of power outlet—suddenly, everything just worked together.
This move toward standardization solved a few critical problems right away:
By creating this shared foundation, the ILPA due diligence questionnaire did more than just save time. It built a much stronger bedrock of trust across the entire private equity landscape.
The real power of the ILPA DDQ isn't just in the questions it asks, but in the conversations it starts. It lets everyone move past basic data collection and into deeper, more meaningful discussions about strategy.
One of the smartest things about the ILPA DDQ is that it isn't stuck in the past. It's a living document, constantly updated to reflect what actually matters to investors today.
Over the last few years, investors have started to care a lot more about non-financial factors that can have a very real impact on risk and long-term value. The ILPA DDQ has kept pace with this shift.
For example, newer versions of the questionnaire dig deep into crucial modern topics like:
This constant evolution is why the ILPA DDQ remains the gold standard for due diligence. For more deep dives into fundraising and fund operations, you can find a wealth of information on the Fundpilot blog. Its continued relevance just goes to show that in the competitive world of fundraising, standardization is the key to building strong, trust-based partnerships.
It’s easy to look at the ILPA Due Diligence Questionnaire and see a massive, intimidating checklist. That's a huge mistake. A seasoned investor sees it as a structured opportunity for you to tell your firm’s story. Each section is a chapter, and your answers need to connect to form a cohesive and compelling narrative.
Let's walk through the most critical sections from an LP’s perspective. This isn’t just about what questions they ask, but why they ask them and how you can use your answers to build a rock-solid case for your fund.
The questionnaire is laid out logically, as you can see below. It starts with the basics of your firm and fund, moves into how you operate, and finishes with how you govern and report. It's a top-to-bottom review.
Understanding this flow helps you see that it’s all connected. Each part builds on the last to create a full picture of your operation.
This first major section really sets the stage. LPs aren't just looking at the numbers here; they're looking for alignment. Every question about management fees, carried interest, GP commitment, and fund expenses boils down to one fundamental concern: Are our interests truly aligned with yours?
Your job is to demonstrate a fair, balanced structure. For an emerging manager, nothing sends a stronger signal of confidence than having significant "skin in the game" through a substantial GP commitment.
And if your fee structure is a bit higher than the industry norm, don't shy away from it. This is your chance to explain the 'why' behind it. Maybe your strategy is highly specialized, or perhaps you offer an incredibly hands-on operational approach that drives superior value. Justify it with a clear, compelling rationale.
If the last section was about alignment, this one is all about your unique edge. LPs see dozens of pitch decks a month, all claiming to have some kind of secret sauce. The ILPA DDQ is where the rubber meets the road—it forces you to prove it with detailed, evidence-based answers.
This is where you need to articulate your investment thesis with absolute precision. Be ready to get granular on your:
The Investment Strategy section is your chance to move beyond the buzzwords. LPs want to see a repeatable, disciplined process that logically connects to the returns you claim you can generate.
Think of it like explaining a recipe. You can't just say you make a great cake. You have to list the specific ingredients, the precise measurements, and the exact baking technique you use to get that perfect result, time and time again.
Here’s a simple truth: investors aren't just backing a fund; they are backing a team. This section of the ILPA questionnaire digs deep into the stability, culture, and governance of your firm. Who calls the shots? How long have they worked together? What happens if a key person leaves?
A massive focus here is stability. LPs are making a 10-year commitment, and they need absolute confidence that the team they invest in today will be the same team managing their capital for the entire life of the fund.
Transparency is non-negotiable. If you've had team members depart, address it head-on. Explain the circumstances professionally and show what steps you’ve taken to strengthen the team since. Handled correctly, a well-managed transition can actually signal a mature and resilient organization.
This is it—the moment of truth. Your track record is the most tangible evidence you have that you can actually execute your strategy. But remember, presenting this data is as much an art as it is a science. Integrity and clarity are everything.
LPs will scrutinize your performance data for consistency. The numbers in your DDQ must perfectly match what’s in your pitch deck, your data room, and every other piece of material you’ve shared. Even a tiny discrepancy can kill an investor's trust.
Your performance data should always include:
Don't just throw numbers on the page; tell the story behind them. Include short, compelling case studies on specific deals—both your winners and your losers. Honestly explaining what you learned from a deal that went south can be just as powerful as bragging about a major success.
This is no longer a niche concern or a box-ticking exercise. Environmental, Social, and Governance (ESG) criteria are now a core part of institutional due diligence. This section is designed to assess your firm’s real commitment to responsible investing.
LPs want to see that ESG is truly integrated into your investment process, not just bolted on as an afterthought. Your answers need to provide specific examples of how you evaluate ESG risks and opportunities during diligence and how you work with your portfolio companies to improve their ESG performance after you invest.
Let’s be clear: a well-documented ESG policy isn't optional anymore. It's a baseline expectation.
The best responses to an ILPA due diligence questionnaire are never improvised. They’re the product of smart planning and methodical execution. For an emerging manager, turning this beast of a task into a manageable project is absolutely critical for a successful fundraise.
The secret is to stop treating the DDQ as a reactive chore and start seeing it as a proactive, strategic part of your capital-raising engine. This means you should have your answers ready long before the first LP sends a questionnaire your way. It’s about building a robust internal system for consistency and accuracy. Answering a DDQ shouldn't feel like a last-minute fire drill; it should be a well-rehearsed play where everyone knows their part.
Completing a DDQ is not a solo sport. Far from it. To get it right, you need input from multiple corners of your firm to ensure every answer is accurate, compliant, and perfectly aligned with your fund’s story. Going it alone is a surefire recipe for mistakes, inconsistencies, and burnout.
Think of your core response team as a small but mighty "special forces" unit. It should be cross-functional, pulling in key people from across the firm.
It's also a great idea to assign a single project manager to quarterback the whole effort. This person will act as the central hub, routing questions, chasing down answers, managing deadlines, and ensuring the final document is cohesive.
One of the biggest time-wasters in the DDQ process is hunting down the same information again and again. You can solve this by creating a central content library—your firm’s single “source of truth” that houses pre-approved, evergreen answers to the most common questions.
This isn’t just a folder of old responses. It's a living library that you have to update and maintain. Every time you craft a brilliant new answer, add it to the repository. When you update performance figures each quarter, update them in the library, too. This simple discipline ensures your team is always working from the most current and accurate information.
Building a source of truth turns a repetitive, manual task into a scalable asset. It ensures that every LP receives the same consistent, high-quality information, which is the foundation of building investor trust.
More and more firms are catching on. General Partners, especially emerging managers, are building these digital content libraries to respond to investor questions quickly and transparently. You can find more insights on how top firms are getting this done by exploring how they streamline their DDQ process on Diligencevault.com.
The last step before you hit "send" is a tough, multi-layered review. A single typo or a tiny data inconsistency can be a huge red flag for a detail-oriented LP. Your review process has to be designed to catch these small but incredibly costly errors.
A simple and effective workflow looks something like this:
By the time the ILPA due diligence questionnaire goes out the door, this methodical approach ensures it represents the absolute best version of your firm’s story. It becomes a polished, professional, and powerful tool for building the confidence you need to secure commitments.
Even seasoned fund managers can get tripped up filling out an ILPA DDQ. It’s easy to do. But small, seemingly innocent mistakes can send up red flags for potential LPs, chipping away at the trust you’ve worked so hard to build.
Knowing where the common traps lie is half the battle. If you can sidestep these issues, you'll deliver a submission that doesn't just check the boxes—it builds real confidence.
One of the fastest ways to lose an investor’s trust? Presenting information that doesn't match up. LPs are meticulous. They will absolutely cross-reference the numbers and facts in your DDQ with your pitch deck, your data room, and your Private Placement Memorandum (PPM).
If a performance metric is off by 0.5x or a team member's title is different from one document to the next, it creates instant friction. It makes them wonder what else might be off.
A classic mistake: You list your AUM as $52M in the DDQ but round it to $50M in your marketing presentation. It seems trivial, but that small gap forces the LP to stop and ask which number is right.
How to fix it: Create a single source of truth. Make one person on your team the "data gatekeeper" whose sole job is to verify that every single number, date, and fact is perfectly aligned across all materials before they ever leave your office.
Investors read dozens, if not hundreds, of these questionnaires. They can spot a generic, copy-and-paste answer from a mile away. Think about phrases like "we leverage our extensive network for deal sourcing" or "we provide strategic operational support." They sound fine, but they're hollow without any real substance.
These kinds of answers signal you haven't truly defined your process or, worse, that you're just like everyone else.
"Your DDQ answers should be so specific that they could only apply to your firm. If a competitor could use the same sentence, it’s not strong enough."
The solution is to always back up your claims with tangible proof. Don't just say you provide support; describe exactly how you helped a portfolio company increase its revenue by 15% by introducing a new go-to-market strategy you developed. That’s a story only you can tell.
We live in an era of intense data sensitivity, and showing you have robust data protection isn't optional anymore. LPs need to know that their confidential information is safe with you. Skimming over questions about your data privacy and security protocols is a massive oversight.
If you need a refresher on your obligations, it's worth reviewing regulations like GDPR. We break this down further in our guide to understanding GDPR for fund managers.
A classic mistake: Writing a one-sentence answer that just says, "we follow industry best practices." This tells an investor absolutely nothing.
How to fix it: Get specific. Detail the actual security measures you have in place. For example, you can mention:
This level of detail shows you're not just paying lip service to security—you're actively protecting your firm and, by extension, your investors.
Let's be honest. The old way of handling the ILPA due diligence questionnaire—emailing massive, error-prone spreadsheets back and forth—is a nightmare. It’s slow, full of inconsistencies, and an absolute drain on your team's time. It pulls you away from what really matters: building investor relationships.
Thankfully, those days are fading fast. Modern platforms are completely changing the game, turning the tedious DDQ process into a much smarter operation for both GPs and LPs. It’s like switching from a paper road atlas to Google Maps; you’ll get where you’re going faster and with way fewer wrong turns.
For an emerging manager, this is a huge leg up. These tools automate the repetitive stuff, cut down on manual errors, and give you analytics that were once impossible to get.
One of the best things these new platforms do is let you build a living library of approved answers. Instead of starting from scratch for every single investor, you create one verified "source of truth" for each question and pull from it as needed.
This is a game-changer for a few reasons:
This centralized system becomes your command center. You can track submissions, see who has what, and keep a clean audit trail. It takes a chaotic, manual workflow and makes it organized and controllable.
Technology shifts the focus from administrative drudgery to strategic communication. It gives you back the time needed to refine your story and build the crucial relationships that get funds closed.
The entire industry is quickly moving toward fully digital DDQs. This shift is making the whole diligence process more interactive and analytical, which helps everyone involved.
For instance, since early 2024, platforms have started hosting the ILPA DDQ in a digital format. This allows for customized frameworks and powerful analytics that can instantly compare data points across multiple funds—a task that used to be a manual, painstaking process. You can learn more about how digital platforms are enhancing the DDQ process on DiligenceVault.com.
What does this mean for you? Less time wrestling with spreadsheets and more time focusing on your fund's narrative. For LPs, it means they can compare funds more easily and accurately. In the end, using technology smartly is directly tied to your fundraising success, letting you compete with the sophistication of a much larger firm.
When you're in the thick of a fundraise, practical questions about the ILPA DDQ are bound to come up. Let's tackle some of the most common ones I hear from managers to clear up any confusion about this critical document.
Legally? No. But in practice? Absolutely.
While there's no law saying you have to fill it out, the ILPA due diligence questionnaire has become the gold standard for institutional LPs. Forgoing it—or trying to substitute your own version—is a massive red flag for serious investors. It signals you might not be ready for prime time.
For an emerging manager, a well-completed DDQ is a powerful way to build trust and credibility right out of the gate. It shows you're transparent, you understand institutional expectations, and you're playing the same game as the established players.
Think of the DDQ as a living document. ILPA updates it every few years to keep it relevant, reflecting new regulations, market shifts, and what’s top-of-mind for investors.
Recent versions, for instance, have dug much deeper into topics that were barely mentioned a decade ago:
Always double-check the official ILPA website to make sure you're working with the latest version. Submitting an outdated one looks sloppy.
The goal is not just to answer the questions but to use the standardized format to tell your firm’s unique story. Specificity and evidence are far more powerful than generic statements.
Not only can you, but you absolutely must. The questions are standardized, but your answers should be anything but generic.
This is your prime opportunity to show LPs what makes you different. Don't fall into the trap of using boilerplate language. Instead of a vague statement, use hard data. Instead of a generic claim, share a specific case study that proves your point.
Treat every answer as a mini-pitch. The DDQ provides the framework, but it's up to you to fill it with the compelling narrative, unique strategy, and proven results that make your fund stand out. Just remember, the data you provide is subject to regulations. You can learn more about your responsibilities by reviewing our firm's privacy policy for data handling.
Ready to move past cumbersome spreadsheets and manual reporting? Fundpilot provides an institutional-grade operations platform that helps emerging managers streamline LP communications, automate fund administration, and build winning due diligence packages. Discover how you can compete with larger funds by visiting https://www.fundpilot.app.
