STEP 2: Review Gathered Documentation

ACTIVITIES

STEP 1: PREPARE FOR FORMAL DUE DILIGENCE

This step aligns with the work required to complete the Prepare and Manage tab of the Due Diligence Project Plan and Checklist tool. The RM owns this tool and leads the various teams and company stakeholders through the DD process.

Outcomes:

● To review the due diligence work that has currently been done, identify gaps, update the Due Diligence Project Plan and Checklist, assign owners to each DD section process and define the DD timeline. ● To prepare the Due Diligence Request List for the company and prepare for the kick-off meeting.

Process:

1. RM reviews the DD folders, makes sure the files are properly named and organized, and updates information in the Due Diligence Project Plan and Checklist and the Due Diligence Request List that has already been gathered or provided. 2. RM holds internal DD kickoff meeting with Legal, IM and SGS to review the Due Diligence Project Plan and Checklist and make enhancements based on feedback from the External IC and IIC. a. Begin with the template but review it and make company-specific revisions or updates to address any items or issues unique to the company, or to include DD questions that have already been identified throughout the prior stages (for example, from the initial IC approvals). b. This tool must be managed by the RM to track the diligence progress, notes and other findings. c. Ensure the teams understand where to save files and remind them of the file naming protocol. d. Ensure the team is clear about the timeline. 3. RM schedules a recurring 30-minute, weekly DD check-in meeting with the team to update the checklist and to share progress updates. 4. RM uses the Due Diligence Request List to create a request list for the company. a. Generally, nothing should be deleted from the request list, only added to the extent there are company or business specific requests that are not addressed in the standard template. The requests in the Due Diligence Request List should align with the questions and subject areas identified in the Due Diligence Project Plan and Checklist.

5. RM share the draft Due Diligence Project Plan and Checklist and draft Due Diligence

Request List with Legal and SIM for comments. Once any feedback is incorporated, obtain signoff on the Due Diligence Project Plan and Checklist from the Dir. of AM. 6. RM sets up a shared folder in firm’s shared drive and where the pipeline company’s DD point of contact (POC) will be given access to upload files. a. The folder structure should align with the topics/numbering in the Due Diligence Request List.

Standards:

● Each time you use a tool, you must “save as” and create a new version specific to that company. ● The RM is responsible for developing the diligence plan, checklist and tools, with support from the IM, SGS and Legal teams. ● The Dir. AM must approve each DD project plan and checklist before holding the kickoff meeting with the Company.

Step 1.a: Hold Kickoff Meeting with Company Management Outcomes:

● The company’s management team understands what to expect during due diligence and why [INV./FUND MANAGER NAME] is doing it. ● The company’s management understands what is needed from them during due diligence and why it is important for them to be responsive and collaborative during this time. ● To share best practices with the company’s management team to ensure a smooth and efficient DD process.

Process:

1. RM schedules and prepare for the in-person DD kick-off meeting with the company’s CEO and management team: a. Purpose: To begin the due diligence process with the company and ensure everyone understands the why, what and how DD works to maximize success. b. Outcomes: Shared understanding of why we do DD, what good DD looks like, and how DD works – from both [INV./FUND MANAGER NAME]’s side and the pipeline company’s side.