Applies to: Fund managers (GPs)
This article explains what due diligence questionnaire (DDQ) is and the steps in the FundCentre Fundraising (FCFR) DDQ.
Investor DDQ
Investor Due Diligence Questionnaire (DDQ) is a structured workflow for fund managers (GPs) and investors (LPs) to exchange due diligence questions and answers. GPs use AI to draft answers and LPs get thorough responses on their timeline.
LPs need to assess a fund manager before committing capital. With DDQ, they can ask questions about:
- Risk identification and mitigation
- Fiduciary responsibility and governance
- Investment strategy alignment
- Operational resilience
- Regulatory compliance
Benefits of DDQ
The following are benefits of DDQ:
- Speed: AI drafts answers in minutes and GP team edits instead of writing from scratch.
- Consistency: All answers reference the same documents, so responses are aligned.
- Transparency: LPs see answers and timestamps. GPs have a clear record of answers shared with LPs.
- Control: AI only reads documents GPs assign explicitly to it.
- Security and Privacy: AI does not store any information in the Intralinks database. All responses stay within your portal unless you publish them.
- Audit Trail: The FCFR application records every action such as edits, approvals, and published answers along with versions, and timestamps for compliance.
Six steps in the DDQ workflow
- Request - An LP sends a DDQ to a GP.
- Intake - FCFR extracts the questions from the LP's file. The file can be an Excel or PDF.
- Draft - AI reads the reference documents uploaded by the GP and suggests answers. The GP's assigned Answerer reviews the draft.
- Internal Review - The GP's assigned Reviewer checks the Answerer's draft and decides whether to send back the answer for edits or to move forward with the draft.
- Publish - The GP makes the answers available to the LP by sending a file.
- Follow-up and close - The LP asks clarification questions with the GP. The LP and GP agree the DDQ is complete.
Key Roles in DDQ
| Role | Who | What they can do |
| GP (Fund manager) | GP firm | Receives questions, provides answers, manages the workflow |
| DDQ Answerer | GP Admin-assigned individual or team | Claims a DDQ, reviews AI draft answer, edits answer |
| DDQ Reviewer | GP Admin-assigned individual or team | Approves the answer edits, publishes final version |
| LP (Investor) | Investor | Sends questions, receives answers, asks follow-ups |