Manager Due Diligence
July 10, 2026
Performance is a function of people, process and continuity. Evaluating the firm and team begins there.
Before evaluating a strategy, evaluate the people behind it.
In private markets, manager selection is one of the greatest drivers of investment outcomes. A disciplined review starts with the firm itself. Beyond historical performance, advisors should understand the experience, stability, and alignment of the investment team responsible for executing the strategy. A firm’s track record, leadership continuity, incentive structure, and capacity discipline all provide important insight into its ability to deliver consistent results across market cycles.
Consider these key questions:
- Track record. Has the team produced consistent results across at least one full market cycle, in the strategy being raised, not an adjacent one?
- Team continuity. What has turnover looked like at the senior investment level? Are decision-makers economically and culturally aligned with the firm’s long-term direction?
- Ownership and incentives. How is equity distributed across the partnership? Are incentives weighted toward fund performance rather than asset-gathering?
- Capacity discipline. Is the firm raising the size of fund the strategy can actually deploy, or is the fund being scaled to match a fundraising target?
- Reference depth. Have references been gathered beyond the firm’s provided list, including LPs in prior funds, former employees, portfolio company management and counterparties?
