As distribution platforms – e.g., wirehouses, independent registered investment adviser platforms and independent broker-dealers – gain popularity among fund managers, some feel tempted to view such platforms as a panacea that solves all their operational, marketing and regulatory issues while simultaneously opening the gateway to retail investors. Those perceptions have made platforms highly competitive, forcing them to adopt stringent selection criteria and intensive due diligence processes. Further, fund distribution platforms come with operational and regulatory concerns that sponsors and managers can ill afford to ignore, according to experts interviewed by the Private Equity Law Report. Such platforms are not designed for all types of fund managers, nor have all state-level regulators taken steps to facilitate broader retail investor access to the private funds industry in a way that optimizes the value of distribution platforms. This second article in a two-part series delves into the selection criteria and due diligence processes that platforms use to evaluate fund products, as well as potential pitfalls of being listed on a platform. The first article explored fundamental obstacles managers face to accessing retail investors; the three categories of retail distribution platforms and the benefits they offer; and certain operational considerations managers must weigh before pursuing a listing on a platform. See “Inherent Obstacles and Promising Pathways to Retailization in the PE Industry” (May 29, 2025).