Red Flags and Green Flags

in LP-GP Due Diligence

For Limited Partners, committing capital is an act of faith and analysis. For General Partners, especially those at the helm of a new firm, raising a first-time fund is a monumental test of credibility and vision. The due diligence process is the crucible where these two forces meet, determining the foundation of a partnership that will last a decade or more.

In today’s competitive and complex market, a sharp eye for the subtle signals is more critical than ever. Let’s break down the key red and green flags that LPs should look for when evaluating GPs, and that GPs should be mindful of as they build their ventures.