# Investor due diligence `kaal:entity:investor-due-diligence` **Status.** derived This node is assembled mechanically from the 7 claims that carry the concept tag `investor-due-diligence`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself. ## Every claim under this term 7 claims across 1 works, 2016 to 2016. **2016** - [2811718-001](https://wulfkaal.github.io/claims/2811718-001) [empirical/evidenced] -- The study rests on two datasets: SEC Form ADV Part II filings by private investment fund advisers from 2007 to 2014 (N=100392) and the publicly available litigation record on private fund investor due diligence from 1995 to 2015 (N=572). > the author examines two datasets: (1) private investment fund advisers' SEC Form ADV II filings from 2007 to 2014 (N=100392), and (2) the publicly available litigation record pertaining to private fund investor due diligence from 1995 to 2015 (N=572). Wulf A. Kaal, Private Fund Investor Due Diligence – Evidence from 1995 to 2015 (2016). SSRN: https://ssrn.com/abstract=2811718 - [2811718-005](https://wulfkaal.github.io/claims/2811718-005) [failure/argued] *(failure mode)* -- 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. > 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. Wulf A. Kaal, Private Fund Investor Due Diligence – Evidence from 1995 to 2015 (2016). SSRN: https://ssrn.com/abstract=2811718 - [2811718-008](https://wulfkaal.github.io/claims/2811718-008) [empirical/evidenced] -- From 2007 to 2014 an increasing number of Form ADV Part II filers deemed investor due diligence worth mentioning, and an increasing number of filers qualitatively increased their due diligence disclosures in the brochure filings. > In sum, Figure 2 demonstrates that from 2007 to 2014 an increasing number of ADV II filers deem IDD worth mentioning, and an increasing number of ADV II filers qualitatively increased their due diligence disclosures in Form ADV II brochure filings. Wulf A. Kaal, Private Fund Investor Due Diligence – Evidence from 1995 to 2015 (2016). SSRN: https://ssrn.com/abstract=2811718 - [2811718-009](https://wulfkaal.github.io/claims/2811718-009) [empirical/evidenced] -- Since 2010 an increasing number of SEC Form ADV Part II brochure filers included investor due diligence disclosures, but the number of filers including such disclosures remained relatively even between 2012 and 2014. > an increasing number of SEC Form ADV II brochure filers included IDD disclosures and the number of filers who include those disclosures has remained relatively even between 2012 and 2014. Wulf A. Kaal, Private Fund Investor Due Diligence – Evidence from 1995 to 2015 (2016). SSRN: https://ssrn.com/abstract=2811718 - [2811718-010](https://wulfkaal.github.io/claims/2811718-010) [empirical/evidenced] -- The intensity of due diligence mentioning relative to total Form ADV Part II brochure filings increased substantially, and the due diligence count exceeded the total number of ADV II filings for the first time in 2014. > The intensity of IDD mentioning relative to total SEC Form ADV II brochure filings has increased substantially; the due diligence count exceeded the total ADV II filings for the first time in 2014. Wulf A. Kaal, Private Fund Investor Due Diligence – Evidence from 1995 to 2015 (2016). SSRN: https://ssrn.com/abstract=2811718 - [2811718-018](https://wulfkaal.github.io/claims/2811718-018) [condition/argued] -- Successful claims based on lacking investor due diligence typically require a complete failure to perform due diligence despite explicit promises to perform it; promising due diligence and then conducting none except in isolated incidents is actionable misrepresentation. > Successful lawsuits in the context of lacking IDD typically require a complete lack of due diligence despite explicit promises to perform such due diligence.90 Promising to conduct due diligence and then failing to conduct any (except in isolated incidents), is actionable misrepresentation. Wulf A. Kaal, Private Fund Investor Due Diligence – Evidence from 1995 to 2015 (2016). SSRN: https://ssrn.com/abstract=2811718 - [2811718-035](https://wulfkaal.github.io/claims/2811718-035) [mechanism/evidenced] -- The data suggest that since 2010 private fund advisers increasingly engage in investor due diligence in order to protect themselves from investor criticism and lawsuits. > The data provided in this study seems to suggest that private fund advisers since 2010 increasingly engage in private fund IDD to protect themselves from investor criticism and lawsuits. Wulf A. Kaal, Private Fund Investor Due Diligence – Evidence from 1995 to 2015 (2016). SSRN: https://ssrn.com/abstract=2811718 ## Verify Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust. curl -s https://wulfkaal.github.io/entities/investor-due-diligence.md | sha256sum **Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.