How a capital raise runs, from first conversation to investor relations
November 1, 2026
EducationGuideNovember 1, 2026
What an investment committee asks
Six questions an institutional allocator puts to a fund manager, and what sits behind each.
Guide
What you need to know
The questions change very little
The order and the emphasis vary from one allocator to the next. The questions themselves change very little. Six come up in most committee reviews of a fund manager.
Staff answer before the committee meets
An institutional allocator does not commit on a meeting alone. Before a fund reaches its investment committee, the staff presenting it need answers to a familiar set of questions.
Results are read by person
Allocators separate realised results from unrealised marks, and ask which of the people now in the room were responsible for each result.
Questions that come up in most committee reviews of a fund manager
6
What does a committee ask?
An institutional allocator does not commit on a meeting alone.
Before a fund reaches its investment committee, the staff presenting it will need answers to a familiar set of questions.
What are the six questions?
The order and the emphasis vary from one allocator to the next. The questions themselves change very little.
- 01Who makes the decisions, and will they still be here?Team and continuity
- 02What has been achieved, and by whom?Track record and attribution
- 03Why this strategy, why this team, and why now?Strategy and edge
- 04Do the terms put the manager and the investor on the same side?Fund terms and alignment
- 05What will the capital be invested in first?Pipeline
- 06Will the fund be run and reported to institutional standard?Operations and reporting
Who makes the decisions, and what have they achieved?
The first two questions are about the people in the room, and whether the record belongs to them.
Team and continuity
Committees look at who sits on the investment committee of the manager, how long the senior team has worked together, and who owns the management company. They read key person provisions closely, and they ask how carried interest is shared, since that tends to decide whether a team stays together for the life of the fund.
Track record and attribution
Allocators separate realised results from unrealised marks and ask for deal-level data alongside fund totals. They then ask which of the people now in the room were responsible for each result. A record built by a team that has since changed is weighed accordingly.
Why this strategy, and on what terms?
The committee tests where the deals come from, and whether the terms put the manager and the investor on the same side.
Strategy and edge
The committee wants to understand where the deals come from and why the manager can win them at a sensible price. It also checks that past investments match the strategy now being described. Drift between the two raises questions that are difficult to answer late in a process.
Fund terms and alignment
Management fees, carried interest, the hurdle and the commitment of the general partner are compared against the market for that strategy. Fund size is tested against the opportunity, and governance, including the role of an advisory committee, is read for how conflicts will be handled.
What will the capital do, and how will the fund be run?
The last two questions are about the early investments and the operations behind the fund, since reporting is how the relationship is conducted once the capital is committed.
Pipeline
Allocators ask to see the transactions the manager expects to complete in the early part of the investment period, and how far along they are. A credible pipeline shows that the strategy can be deployed at the pace the fund terms assume.
Operations and reporting
Operational diligence covers the administrator, the auditor, the valuation policy, compliance and cyber security. Committees also ask what investors will receive, how often, and in what format, since reporting is how the relationship is conducted once the capital is committed.
Notes and sources
- [1] The questions above reflect general practice among institutional investors and vary between allocators.
For information only. This guide describes general practice, which varies between managers and allocators. It is not an offer or solicitation to buy or sell any security, and it is not investment, legal or tax advice.
