Blueprint Intelligence / Data Room and DDQ / Co-investments, what the DDQ asks even before a fund has offered any
Data Room and DDQ
Co-investments, what the DDQ asks even before a fund has offered any
Most first-time managers have not offered a co-investment yet, and this section still gets asked. The honest, complete answer is usually about the policy that would govern one, not a track record of deals already done.
A first-time fund frequently has no co-investment history to report, and the DDQ's co-investment section is built to handle that: it asks less about deals already offered and more about the policy that would govern allocation, fees, and conflicts if and when one is. A GP with no co-investment track record who can state that policy clearly has answered the section completely.
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What this section is actually checking for
An allocator reading this section wants to know whether co-investment opportunities, if the fund offers them, would be allocated fairly across LPs, on what basis, and whether the GP or the management company would earn any additional fee or carry from a co-investment separate from the fund's own economics. This is a governance question about a future scenario, not a request for a completed transaction history.
What to document even with no co-investment history yet
- A stated allocation policy: how co-investment opportunities, if offered, would be prioritized among LPs, whether pro rata, first-come, or another defined method.
- Whether the management company or its principals would earn a fee or carry on a co-investment separate from the fund's standard economics, disclosed plainly either way.
- How a potential co-investment conflict, for example a deal that could go to the fund or to a co-investment vehicle, gets flagged and resolved, tied to the firm's broader conflicts of interest policy.
- If co-investments have occurred, even informally through prior SPVs or angel activity, a brief accounting of how those were allocated.
Where this connects to the rest of the room
A fund's conflict of interest policy, covered in the firm governance and compliance section of the DDQ, is where the co-investment allocation rule should actually live as a governing document, not just as an answer typed into this one section. Keeping the two consistent, the policy as stated here and the policy as written into the conflicts document, is what keeps this section from reading as an answer improvised for the questionnaire rather than a real, standing policy.
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