AIMA Due Diligence Questionnaires
What AIMA Is
The Alternative Investment Management Association (AIMA) is a global industry body representing the alternative investment management industry, with members including hedge fund managers, private credit managers, fund of funds, prime brokers, administrators, and other service providers.
AIMA publishes sound practices guidance, research, and standardised documents including the due diligence questionnaires (DDQs) described here. It is particularly influential in the hedge fund and liquid alternatives space.
What the DDQs Are
AIMA’s Due Diligence Questionnaires are standardised frameworks for investors to assess alternative investment managers. Rather than each LP creating its own bespoke questionnaire, the AIMA DDQs provide a common question set that managers can complete once and share with multiple prospective investors.
Key DDQ types include:
Hedge Fund DDQ — A comprehensive questionnaire covering investment process, risk management, portfolio construction, leverage, liquidity, operations, compliance, governance, and key person risk.
Private Credit DDQ — Covering origination, credit analysis, portfolio management, risk controls, and operational processes for private credit managers.
Operational Due Diligence DDQ — Focused specifically on operational infrastructure: back-office systems, fund administration, valuation policies, cybersecurity, business continuity, and governance.
Service Provider DDQs — For assessing prime brokers, fund administrators, and other key service providers to alternative funds.
Note: Some AIMA DDQ materials require AIMA membership or registration to access in full. The descriptions here are based on publicly available information about AIMA’s DDQ programme. Investors intending to use DDQs in a formal due diligence process should access the current versions directly from AIMA.
Why It Matters
Hedge fund manager selection: The hedge fund strategy, leverage, liquidity, and governance dimensions covered in the AIMA Hedge Fund DDQ correspond directly to the risk areas discussed in the hedge funds file. The DDQ provides a structured way to assess these dimensions in a real manager.
Private credit due diligence: For private credit managers, the DDQ framework covers credit process, covenant monitoring, PIK policy, valuation methodology, and default management — the same concepts discussed in the private credit knowledge file.
Operational due diligence: The Operational DDQ is directly relevant to operational risk assessment — covering exactly the types of failure modes (systems, controls, governance, counterparty) that operational risk describes at a conceptual level.
Leverage and risk controls: The DDQ’s risk management sections cover leverage risk in the context of specific manager strategies — including how gross and net leverage limits are set and monitored.
Liquidity: The DDQ covers liquidity risk from the manager’s perspective: how the fund’s liquidity terms match the underlying portfolio liquidity, and what mechanisms (gates, side pockets, notice periods) are in place.
Onboarding and KYC: For onboarding and KYC, the DDQ provides a structural overview of the documentation and governance an investor should expect from a well-run manager.
Separate managed accounts: For SMAs, the operational DDQ is particularly relevant — the customised mandate and reporting obligations of an SMA require a more detailed operational review than a standard fund subscription.
Relevant Local Files
- Hedge Funds
- Private Credit
- Operational Risk
- Leverage Risk
- Liquidity Risk
- Onboarding and KYC
- Separate Managed Accounts
Source Verification Note
This source note is based on publicly available descriptions of AIMA’s DDQ programme. The full DDQ documents may require AIMA membership or registration. This file does not reproduce DDQ questions or claim to accurately summarise the current DDQ versions. Investors using DDQs in formal due diligence should obtain current versions directly from AIMA.