Fund one-pager checklist

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.