While the fund manager performs deep due diligence on assets, you, as the investor, must perform due diligence on the fund manager itself. Your checklist should include:
- Team Track Record: Has the team worked together before? What is their long-term performance across cycles?
- Strategy & Alignment: Is the fund’s strategy clear? Is the fee structure fair (e.g., a good hurdle rate)?
- Reference Checks: Talk to previous or current investors about their experience with the fund.
Choosing the right manager is the most critical decision in AIF investing.
