A: Refinement is a consistent theme across ODD programs, which must continually adapt to industry evolution across functional areas, including: accounting and operations; regulatory compliance; and IT and cybersecurity. For example, over the past year, expectations for cybersecurity best practices and resilience have risen as general partners and their vendors face a growing volume of threats.
Q: What prompted the most meaningful changes to your background check or due diligence processes, and which factors (investor expectations, internal learnings, regulatory shifts, or market conditions) played the largest role?
A: Enhancements to our due diligence process arise from multiple sources, including evolving industry best practices, regulatory guidance, investor expectations, and events affecting general partners and their service providers. These developments can prompt ODD to conduct additional or deeper reviews in specific functional areas, require best-practice adjustments, and raise expectations for general partners to evolve to meet these standards.
Q: Where do you see the greatest opportunities to improve operational transparency, reputational insight, or risk clarity in 2026?
A: Continued development of tools, particularly AI, will drive efficiency by enabling a more streamlined review process, stronger benchmarking and transparency, and more proactive and thorough ongoing monitoring of general partners. Beyond strengthening ODD programs, general partners should also see a corresponding benefit from a more streamlined, efficient ODD response process.
Q: Have DDQs shifted in substance, emphasis, or depth in your interactions with GPs? If so, how?
A: DDQs are typically broad to elicit comprehensive information and ensure all relevant ODD risk areas are addressed. Beyond the DDQ, the scope and focus of meetings, follow-up questions, and document requests vary based on factors such as strategy, market and industry conditions, regulatory requirements and changes, and risks specific to a general partner’s operating environment.
Q: How are you approaching portfolio risk calibration, particularly as reputational and operational risk evolve?
A: Our ODD team proactively tracks industry and peer benchmarks, regulatory developments, evolving trends, and media/legal alerts. This continuous oversight ensures we identify and address risks in real time across our team and in partnership with our general partners.
Industry Insights by Hilton Global Associates
The responses shared in this Q&A reflect a broader set of industry insights observed by Hilton Global Associates across the ODD market. Common themes include continuous refinement of ODD frameworks, heightened expectations around cybersecurity and operational resilience, and increasing reliance on data, technology, and benchmarking to enhance transparency and risk clarity. Together, these perspectives underscore a market-wide focus on adaptability, proactive risk management, and more efficient engagement between investors and general partners as ODD programs continue to evolve.
At Hilton Global Associates, we remain committed to supporting investors through thoughtful, discreet, and globally informed investigations that help turn complexity into clarity.