SAMPLE DUE DILIGENCE CHECKLIST

FUND

Purpose

The purpose of an investment due diligence checklist is for an investor to make sure that they have completed full due diligence on a potential investment opportunity. In addition, to the extent that an investment bank or broker/dealer is utilized in a capital raise, the investment bank or broker/dealer is required, by regulation, to complete their own due diligence process before offering a potential investment opportunity to potential investors.   The due diligence that the investment bank or broker/dealer uses in their process will also be used by investors for their investment decision making.

In order for an investor to make a well-informed investment decision especially when they are giving someone else investment decision making discretion, they typically have a standard set of questions and required information that they need to review before they are willing to make an investment. The areas covered in a due diligence checklist are related to helping an investor make a reasonable decision about the risk adjusted return of an investment opportunity.

Covered Topics

A Fund Due Diligence checklist typically covers Fund as well as Company standard topics such as (see full sample due diligence checklist here):

• Fund Documents
• Governance and Team
• References
• Presentations/Investor Communications/DDQ:
• Investment Pipeline/Current/Past Transaction
• Investment Process
• Fund Reporting
• Research
• Leverage/Unique Financial Structures
• Fund Manager Corporate Information
• Fund Manager Regulatory, Compliance and Operations

Having well-constructed and complete information on these basic topics provide the information that an investor required to complete their due diligence process.

Result

The result of well-constructed and complete due diligence information is a seamless and well received capital raising process which increases a capital seeker/issuer’s chances to raise capital. Investors respect and appreciate thoughtful due diligence information since it shortens their due diligence process significantly meaning they are able to make an investment decision more quickly. 

Given most capital seeker / issuer’s preference for a quick and seamless capital raise as well as investor and capital seeker / issuer’s interest to have a seamless due diligence process, the capital seeker /issuer and investors interests are aligned in having complete due diligence information.

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About Deer Isle Group:

Deer Isle Group (“Deer Isle”) empowers investors and capital seekers with the right tools to ensure a transparent, smooth and efficient capital solution. Our proprietary technology offers fast access to capital markets beyond your network, and our expertise provides ‘as-needed’ closing expertise/guidance for a more successful capital solution.

Founded in 2007, Deer Isle with its subsidiaries, Deer Isle Capital, a registered broker/dealer, and Deer Isle Financial, is an innovative investment bank that provides “as needed” financial/strategy and closing advisory as well as proprietary technology solutions that give curated access to 10,000+ institutional investors.

Our successful track record includes having raised over $5 billion in private placement capital since our founding. Deer Isle’s capabilities and expertise provides value-add for both investors and capital seekers/issuers by understanding investor requirements and helping capital seekers achieve an institutional-quality sales process or capital raise.

Our fundamental strength is our institutional-quality advice combined with our proprietary technology solutions. Our success in these factors has helped drive our proven execution capabilities.

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