Checklist|Reading a fund
Fund one-pager checklist
Five highlighters for any fund factsheet. Mark what it says, then write down what it does not.
Fund one-pager checklist
A fund one-pager is a sales document. Read it with five highlighters, then write the questions it leaves open. About 20 minutes per factsheet.
Green: strategy
- In one sentence, what will this fund buy, where, and at what size?
- How is it different from the manager’s last fund (size, region, strategy)? What question does each change raise?
- Is the team that built the track record the team running this fund?
Blue: performance figures
- Is each figure gross or net of fees and carry? Is net shown as prominently as gross?
- What are DPI, RVPI and TVPI? How much of the value is still unrealised?
- What is the as-of date? Is it recent?
- Does the fund use a subscription line? Ask for IRR with and without it.
Gold: track record claims
- Does “realised deals average…” include every realised deal, including write-offs?
- “Top quartile” against which benchmark, which vintage, which measure (IRR, TVPI or PME) and as of when?
- Are all prior funds shown, or a selection?
Red: terms
- Management fee: rate, basis (commitments or invested capital) and step-down.
- Carry, preferred return, catch-up, and whole-fund or deal-by-deal waterfall.
- GP commitment: how much, in cash, as a per cent.
- Fee offset: what share of portfolio-company fees reduces the management fee.
- Key persons: who, and what happens if one leaves.
Black: what is missing
Write the list of documents and figures you would ask for next. Six items is a good start.
What good answers look like
- Performance: net and gross side by side, same period and method (the standard the SEC’s marketing rule sets for US advisers’ advertisements); DPI shown, not just TVPI and IRR; a recent as-of date.
- Track record: every deal and every fund, with cost, proceeds, current value and dates. The SEC’s examiners have criticised cherry-picked track records and stale performance in fund marketing.
- Benchmarks: a named benchmark, the vintage, the measure and the date.
- Terms in numbers, not words: “significant”, “market standard” and “per LPA” are prompts for a question, not answers. For context, in Callan’s 2024 study of fund documents the median investment-period fee was 1.75 to 2.00 per cent, 84 per cent had an 8 per cent preferred return and every fund offset portfolio fees.
Learn the metrics behind this checklist in DPI vs TVPI and Carried interest explained.
Education only. General educational material, not investment, legal or tax advice. All funds, managers and numbers are hypothetical. Discuss any real decision with a qualified adviser.
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Sources
Where the numbers come from
Cited and paraphrased. Checked by us in October 2026.
- US SEC, Investment adviser marketing rule, 17 CFR 275.206(4)-1(d). www.law.cornell.edu/cfr/text/17/275.206(4)-1
- US SEC Division of Examinations, Risk Alert: Observations from Examinations of Private Fund Advisers (27 Jan 2022). www.sec.gov/files/private-fund-risk-alert-pt-2.pdf
- Callan, 2024 Private Equity Fees and Terms Study (27 Aug 2024). www.callan.com/blog/2024-private-equity-fees/
- CFA Institute, GIPS Standards for Firms (2020). www.gipsstandards.org