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ODD

Operational due diligence: assessment of the infrastructure around a strategy — service providers, valuation, cash controls, compliance, continuity. Frequently sits in a separate team with an independent veto, and is where most emerging managers actually fail.

ODD — Operational due diligence: assessment of the infrastructure around a strategy — service providers, valuation, cash controls, compliance, continuity. Frequently sits in a separate team with an independent veto, and is where most emerging managers actually fail.

ODD frequently sits in a separate team from investment due diligence with its own independent veto — meaning a fund can pass investment diligence comfortably and still be declined outright on operational grounds, which is exactly why it deserves attention before, not during, a raise.

Frequently asked questions

What is the difference between investment due diligence and ODD?

Investment due diligence assesses whether the strategy and team can generate returns; operational due diligence assesses the infrastructure around it — service providers, controls, compliance — largely independent of investment merit.

Can a strong track record overcome a weak ODD result?

Rarely — many institutional allocators treat ODD as an independent gate, meaning a fund that fails it is declined regardless of how strong the investment case is.

Nothing on this page is legal, tax, or investment advice. SeRuM is not a registered broker-dealer, not a placement agent, and not an investment adviser.

Data roomA permissioned repository of diligence materials. See the data room checklist for what bel Fund administration and service providersRelated reading.Investor data room checklistRelated reading.

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