# kaal:claim:2811718-005

**Claim.** Almost no guidance exists on the standards applicable to private fund investor due diligence, so despite the growing importance of due diligence in capital formation and in litigation the industry is left mostly to its own devices to ensure adequate standards.

**Type.** failure  **Support.** argued

**Holds when.**

- United States private fund industry
- as of 2016

**Source quote.**

> Little to no guidance exists on applicable standards for IDD.18 Despite the increasing relevance of IDD in the capital formation and allocation process, and IDD litigation, the industry is mostly left to its own devices to ensure adequate due diligence standards apply.

**From.** Wulf A. Kaal, *Private Fund Investor Due Diligence – Evidence from 1995 to 2015* (2016), I. Introduction, page 9

**Cite as.** Wulf A. Kaal, Private Fund Investor Due Diligence – Evidence from 1995 to 2015 (2016). SSRN: https://ssrn.com/abstract=2811718

**Verify.** sha256 of source PDF `b52152af561288173840a1cabbcf8f4b337e73507c856ee01600799073f4156f` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202016%20-%20Private%20Fund%20Investor%20Due%20Diligence%20%E2%80%93%20Evidence%20from%201995%20to%202015.pdf

**Failure mode.** standards vacuum in private fund due diligence  (family: harmonization-and-standardization-failure)

**Topics.** law-and-legal-systems

**Keywords.** legal-standards, regulatory-gap, investor-due-diligence, self-regulation

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/2998097-028
- restated_by: https://wulfkaal.github.io/claims/2998097-030

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.