This Due Diligence checklist is designed to guide investor discussions with sponsors of a growth orientated investment offering. It provides a structured framework to evaluate sponsor background, growth thesis, execution plan, and risk management.
Sponsor Background & Alignment
- What is your firm’s experience and how have actual IRRresults compared with projections?
- How much of your own or affiliate capital is committed tothis growth strategy?
- How are you compensated (fees, carry, promote)? Does thisstructure align with long-term value creation for investors?
Growth Thesis & Execution
- What are the primary levers of growth (market expansion,acquisitions, technology adoption, operational scaling)?
- What milestones and measurable KPIs will you use to tracksuccess and progress?
- What differentiates your growth approach from competitors(e.g., sector expertise, proprietary edge) and who are your peers?
Risk & Exit Strategy
- What is the timeline and pace of deploying capital intoopportunities?
- What market, regulatory, or operational risks could hindergrowth, and how do you mitigate them?
- What are the planned exit options and time frame (IPO,recapitalization…), and what redemption, buyback, or secondary market optionsexist if one needs early liquidity?
Oversight & Transparency
- How will you report on growth progress and performance toinvestors (frequency, detail, independent validation)?
- Can you provide examples of past growth strategies thatunderperformed, and how you addressed them?
- How do you ensure alignment of interests if growth takes longer or results differ from
projections?
