The Alternative Investment Management Association (AIMA) has published an updated questionnaire for hedge fund managers.
Called the Due Diligence Questionnaire (DDQ), it’s meant for prospective investors to assess managers. It can also help managers respond efficiently to requests for information from multiple investors.
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It was last revised in 2010. AIMA says there’s been strong demand for an updated version to reflect regulatory changes since then, including the Alternative Investment Fund Managers Directive (AIFMD), which took effect in July. The organization adds investors are also “significantly increasing the scope of the due diligence process.”
There are more than 90 new questions, while many old questions have been consolidated. AIMA has indicated where the new version differs from the previous one.
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AIMA’s suite of due diligence questionnaires, launched in 1997, covers the selection of hedge fund managers, CTAs, fund of hedge funds managers, clearing members, prime brokers and administrators. They are only available to AIMA members.