On‑Site ODD: Post‑Visit Steps to Memorialize and Follow Up on Diligence Results (Part Three of Three)

On-site visits have become de rigueur in operational due diligence (ODD), with many investors putting a high premium on face-to-face meetings with fund managers. While this visit is a major step in the ODD process, it is certainly not the final one for investors. Completion of the on-site visit merely serves as the starting point for investors to determine what steps they want to take to supplement, memorialize and update their ODD efforts moving forward. This three-part series aims to improve the quality and efficiency of on-site visits by revealing best practices learned by long-time ODD practitioners. Specifically, this third article addresses investor decisions to visit manager service providers, proper documentation of the on-site ODD visit and considerations for regular follow-up reviews of managers. The first article focused on the rationale for the on-site visit and the mechanics of preparing for the visit. The second article explored ways investors should conduct on-site ODD visits and how managers can prepare for them. For tips on handling investor questions during an ODD visit, see our two-part series “How Are Your Peers Responding to the Most Intrusive Requests From Private Fund Investors?”: Part One (Mar. 26, 2019); and Part Two (Apr. 2, 2019).

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