Despite an ever-growing volume of DDQs, investor relations teams are still relying on manual DDQ workflows like this:
- Receive a DDQ from an investor.
- Review the questions.
- Struggle to find answers across different documents.
- Attempt to answer each question by copying & pasting or drafting from scratch.
- Confirm each answer with legal and compliance
- Go through a final approval stage with legal.
- Reformat the DDQ to the LP’s preference.
- Submit.
IR teams can’t scale this time-consuming, manual process. No matter how repetitive or similar the DDQ forms are, most IR teams restart the process each time they receive a DDQ.
For fund managers ready to move past this frustrating situation, purpose-built DDQ software can streamline and even automate the due diligence questionnaire process. By adopting industry-specific AI software for due diligence questionnaires, IR teams can answer, track, and submit investor requests with confidence and speed, freeing up their focus for more nuanced and critical discussions with investors.
What is DDQ software?
Due diligence questionnaire software is a tech solution for automating the workflow needed to respond to investor DDQs completely, accurately, and quickly. The purpose of DDQ software is to streamline the process for investor relations teams, their internal stakeholders, and investors.
The benefits of purpose-built DDQ software
DDQ from Ontra is an AI-powered software solution that helps fund managers quickly and confidently answer, track, and submit investor requests on time (or early). As a solution built for private fund managers, it lets internal teams:
- Work from a single source of truth: Create a precedent library of standard answers. Automatically update responses to new and existing questions to save time on future DDQs.
- Drive answer standardization: Provide clear, consistent investor communications across every team and fund strategy.
- Streamline internal collaboration: Track all outstanding fundraising, operational, and ESG requests in one place to understand progress towards completion. Assign questions, take notes, and approve answers.
- Complete DDQs quickly: Breeze through repeat questions by selecting from your organization’s most recent and relevant responses. Or let AI tackle the first pass with answers that prioritize recency and completeness over simple keyword matching.
- Accelerate approvals: Leverage pre-approved language and avoid outdated responses to return DDQs ahead of schedule.
The result? IR teams have more time to spend on more nuanced conversations with investors. They can put their effort into building strong, long-lasting relationships rather than filling out paperwork.
Avoid horizontal RFP and AI tools
Some PE firms adopt an RFP or AI software solution to address DDQs. They’re rarely happy with that decision.
Neither type of software is purpose-built for the private markets and complex investor questions. The solutions struggle with the content and industry context of investor questions, resulting in inaccurate and incomplete answers. Firms relying on an RFP or a generic AI solution often revert to their manual processes to review and correct the generated answers.
5 steps to setting up due diligence questionnaire software
To get the most from a purpose-built DDQ software solution, fund managers should navigate implementation mindfully. Following these steps helps a firm get IR up to speed quickly and see a return on its investment as soon as possible.
Digitize precedent materials
Digitize previous DDQ forms and responses, turning that information into structured data. Previously approved materials build the foundation of a strong precedent library.
Upload DDQ template answers
Document pre-approved answers to common DDQ templates, including the ILPA DDQ 2.0 and AIMA DDQ Decision Tree, further strengthening the precedent library and future AI-driven answers.
Limit access and permissions
Define who needs access to the solution and to what level they can view or edit information. Access controls ensure the firm keeps its business and investor information secure.
Define DDQ workflows
Learn to move through the questionnaire process differently with DDQ software. Redefine the necessary workflows and how best to collaborate with various stakeholders within the solution.
Deploy AI responses
Let AI take the first pass by suggesting approved answers or generating a draft response for review. The ever-evolving precedent library enables IR teams to generate answers quickly, with confidence.
Automate the completion of DDQs with Ontra
Ready to learn more about Ontra’s purpose-built DDQ software solution?
