Due diligence – the necessary evil of private fund investing.
It’s the part of the job that makes you feel like both a detective and a librarian, digging through mountains of data, scheduling calls, and documenting every step of the way. Love it or hate it, due diligence is critical for success in private markets.
But let’s face it: the process could use a serious glow-up.
Enter Dakota: the ultimate tool for transforming your private fund due diligence from a grind to a breeze.
Whether you’re an investment allocator, a small endowment team, or a family office balancing 50 other tasks, we’re here to help you streamline your process and reclaim your time.
In this article, we’re going to give you five key steps to streamlining your due diligence process. By the end of this, you’ll have a better understanding of how to optimize your time effectively.
Step 1: Start with the Basics – Centralized Data
Tracking down the right fund data feels like detective work. A name here, a contact there, maybe some performance metrics in a spreadsheet from last year. Multiply this by ten funds, and you’re drowning in tabs, notes, and emails.
Centralize your data. Dakota brings fund details, manager profiles, and performance insights together in one intuitive platform. Want to find all funds focused on private credit in the U.S.? Done. Need details on a manager’s past funds? Easy. By starting with a single source of truth, you save time and ensure nothing falls through the cracks.
Step 2: Go Deeper with Qualitative Insights
Numbers tell you what a fund has done, but they don’t tell you why or how. Qualitative insights – like a manager’s philosophy, team expertise, or sector focus – are critical for evaluating fit, but gathering that information often means a long game of email and call tag.
Integrate qualitative insights into your process. Dakota compiles detailed profiles that include investment philosophies, portfolio strategies, and even unique differentiators (hello, secret sauce). Instead of scheduling multiple calls for basic info, you can hit the ground running with real context.
Step 3: Use Real-Time Fundraising Data to Stay Ahead
Missing a fundraising window is like showing up late to a party: you’re out of luck. But with private funds, it’s not just about knowing what’s open – it’s about tracking trends and understanding timelines so you can act fast.
Leverage real-time fundraising data. With Dakota, you’ll know exactly which funds are open, closed, or launching soon. Filter by size, strategy, or region to align opportunities with your investment goals. This proactive approach helps you stay competitive in an increasingly fast-paced private markets landscape.
Step 4: Streamline Collaboration and Workflows
You’re working with a team, but somehow everyone has a different version of the truth. One person has their notes in a spreadsheet, someone else is tracking calls in an email thread, and the CRM hasn’t been updated since… who knows when.
Centralize your workflow. Dakota is built on Salesforce for seamless workflows ensuring that all notes, updates, and action items are stored in one place. Collaborate with your team without duplicating efforts, and track progress seamlessly. Think of it as Marie Kondo-ing your due diligence workflow.
Step 5: Make Better Comparisons, Faster
Comparing funds is often like comparing apples to oranges: every fund has a slightly different focus, strategy, or structure, and there’s rarely a standardized way to evaluate them side by side.
Standardize your comparisons. Dakota allows you to pull detailed fund profiles and compare key metrics and qualitative data side by side. Whether you’re evaluating performance, team expertise, or sector focus, you can quickly identify what sets one fund apart from the others.
A Real-World Example: From Chaos to Clarity
Imagine this: Your boss drops a list of five potential funds on your desk. They want a full analysis by Friday. Instead of panicking, you log into Dakota. Within minutes, you:
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Pull profiles for each fund, including performance and qualitative details.
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Compare strategies, regions, and timelines side by side.
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Add notes for your boss’s review, all within the same platform.
By Friday you’re not only prepared, you’ve delivered actionable insights with time to spare (for coffee, obviously).
Take the First Step Toward Smarter Due Diligence
Streamlining due diligence isn’t just about saving time (though that’s a big perk). It’s about improving accuracy, reducing stress, and creating a process that scales with your team. By centralizing data, integrating workflows, and using tools like Dakota to uncover deeper insights, you can focus less on the grind and more on the strategy.
For more information, book a demo of Dakota here!
