The framework below consolidates Section VI into a single instrument an investment committee can apply to any continuously offered vehicle. It is designed to sit alongside—not replace—ordinary manager and strategy diligence.
Structural diligence framework
1
Liquidity architecture
Mandatory rule or board discretion; per-period and annual caps; pro rata treatment; notice and settlement terms; suspension conditions and authority.
2
Liquidity sleeve
Sleeve size and composition; reconciliation of sleeve size against the target return; redemption resilience versus return dilution.
3
Deployment discipline
Evidence that inflows match deal flow; safeguards against deploying into weaker assets under inflow pressure.
4
Valuation control
Who determines NAV; cadence and inputs; independent valuation agent and how the conflict is managed; staleness tolerance between strikes.
5
Fee and leverage layering
Like-for-like total fee comparison; leverage and its limits; how leverage interacts with NAV-based subscriptions and redemptions.
6
Denominator and flow
Investor-base concentration; effect on remaining holders of a large redemption cohort; net-flow status and sensitivity to a flow reversal.
