ODD Methodology

Hedge Fund & Private Equity Fund Operational Due Diligence Since 2009

Watch a short video to learn about PRISM’s ODD process and requests of managers.

The scope, approach, and process is important for all counterparties involved.

The relevant differentiating factors in operational due diligence.

Everyone can conduct some semblance of operational due diligence, but the key factors are methodology, approach, process, and deliverable.


PRISM is an independent firm with a focus on experience. Its mission is simply to provide institutional quality operational due diligence, so that investors have access to better information. PRISM’s due diligence process follows a methodical yet systematic framework, while layering in years of institutional experience. The due diligence reports are designed to meet the needs of the largest institutional allocators.


PRISM’s approach to ODD is to be business minded, and at the same time provide in depth and accurate analysis. With that said, PRISM applies an audit skillset with an investment management mindset, while recognizing that the allocator and the investment manager are aiming to partner together.


The design of the ODD scope and the ODD process are critical to the ODD goal. PRISM applies a repeatable process when conducting due diligence on fund managers. The process includes hundreds of procedures. 

ODD Process


PRISM provides each manager with a standardized and commercial document request at the onset of each ODD review.


Each manager site visit follows a standardized agenda, with an average site visit ranging from 3-5 hours. PRISM meets with back office team members.


Service provider confirmations are sent to various firms that provide services to the fund and manager (i.e. fund administration, banks, legal, etc.)

Deliverable: The “Green Book”

Receive PRISM’s proprietary Operational Due Diligence Report for every fund. The “Green Book” is a comprehensive assurance report detailing the fund’s operations and framework, highlighting associated operational and structural risks.