Manager due diligence for a family office: what to verify
The essentials in 30 seconds
- Manager due diligence for a family office means verifying a manager’s firm, people, track record, process, operations and terms before capital moves.
- A Singapore family office can run these 6 checks as of October 2026.
- Independent sources confirm each claim: registers, administrators, custodians and auditors.
- Reference calls with 2 former colleagues per key person test the biography.
- A dated annual file keeps the decision traceable, and EQOS Asia offers a method page for structured decisions.
Manager due diligence is the checking work a family office does on an outside investment manager before it gives that manager capital. This guide lists what to verify, in what order, and which documents prove each point, as of October 2026. It belongs to the series on family office investing in Singapore, and it ends with a routine you can repeat every year. This page is general information, not legal, tax or investment advice.
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What does manager due diligence mean for a family office?
Manager due diligence is the work a family office does to verify an outside investment manager before it commits capital. The family collects documents, checks claims against independent records, and asks direct questions. The result is a written file that shows why the manager was chosen. As of October 2026, a Singapore family office that hires external managers can run this work in 6 checks.
The checks sit inside the wider routine of family office investing, which turns a family’s goals into mandates. Verification comes first, and selection follows. A manager who passes all 6 checks earns a place on the shortlist, and a manager with open questions stays off the list until the answers arrive.
Which facts about the manager’s firm should a family office verify?
Start with the legal entity. Ask for the exact name, the country of incorporation, the licence or exemption that allows it to manage money, and the date it was granted. Then confirm each item on the public register of the regulator in that country. A licence number that matches the register is a fact, while a licence number quoted in a brochure is a claim.
Next, look at ownership and size. Request the list of owners, the share held by the portfolio managers, and the assets under management over the last 5 years. Firms whose managers invest their own money alongside clients show alignment. Stable ownership and steady assets also suggest that the team will still be there when your mandate matures.
How does a family check the people behind a manager?
Ask for a short biography of each person who will touch your money, with employers and dates. Call 2 former colleagues or employers for each key person, and compare their account with the biography. Search court, regulatory and media records in the countries where the person has worked. Consistent answers across these sources build trust in the team.
Then study team stability. Count how many senior people joined or left in the last 5 years, and ask who takes over if the lead manager leaves. Check whether each person is dedicated to your strategy or shares time with other products. A deep bench and clear succession inside the firm protect a family’s mandate over many years.
How should a family verify a manager’s track record?
Ask for monthly returns since inception, net of all fees, in the currency of your mandate. Check that the figures come from an administrator or custodian statement, not only from the manager’s own presentation. Confirm that the track record belongs to the people who will run your money, since a record built by a former team shows little about the current one.
Then read the numbers in context. Compare the results with a benchmark that matches the strategy, and look at the worst year and the time taken to recover. Ask what share of the return came from 3 or 4 positions. A record that is repeatable across several market conditions tells you more than a single strong year.
Which investment process checks matter for a family office?
Ask the manager to describe how an idea becomes a position: the research, the review, the sizing and the exit rule. Request 3 recent decisions with the written notes made at the time. A process that leaves a paper trail can be examined by your investment committee, and it shows that results come from method instead of luck.
Check that the stated strategy matches what the portfolio holds. Compare the holdings reports with the mandate on 3 points: the asset types, the position limits and the use of leverage. If the manager is allowed to drift beyond the stated range, the family needs to know the boundary in writing. Clear limits make later reporting simple and objective.
Which operational checks should a family office run on a manager?
Operational checks confirm that the money is held safely and valued fairly. Verify that an independent custodian holds the assets in your name or in a segregated account. Confirm the identity of the fund administrator, the auditor and the legal counsel, and call each one. Independent service providers give the family a second source for every number the manager reports.
Also review how the firm runs day to day. Ask about valuation policy for hard-to-price assets, trade reconciliation, cybersecurity, business continuity and compliance staffing. Request the most recent audited accounts and read the auditor’s opinion. A manager with documented controls and a tested recovery plan gives the family office a stable base for reporting and governance.
How should a family office review fees and terms with a manager?
List every charge the family will bear: the management fee, any performance fee, the hurdle and high-water mark, fund expenses and trading costs. Ask for a worked example in dollars on a given investment amount, and check it against the legal documents. Clear fee terms let the investment committee compare 2 managers on the same footing.
Review the rights that come with the money. Look at lock-up periods, redemption notice, side letter terms, reporting frequency, and what happens if a key person leaves. A family that negotiates clear exit and reporting rights keeps control of its capital. Have your own lawyer read the final documents, since this page is general information and not a substitute for legal review.
How often should a family office repeat manager due diligence?
Treat the first review as the start of a cycle. Refresh the file once a year for each manager, with a short update after any event that changes the picture: a key person leaves, assets rise sharply, or the strategy shifts. Keep every answer in one record, dated and signed off by the person who checked it, so the history stays easy to follow.
Compare each annual file with the previous one and track 6 headline items: firm, people, record, process, operations and terms. Rate each as clear, open or concern. The family office can then discuss changes with the investment committee. Families that want help structuring this routine can review the EQOS Asia method page and book a pre-diagnostic through its contact page.
See also in this guide
Frequently asked questions
What is manager due diligence for a family office?
It is the process of verifying an outside investment manager before the family commits capital. The family office checks the firm, the people, the track record, the investment process, the operations and the terms, using documents and independent sources. The output is a dated file that explains why the manager was chosen or declined.
Which documents should a family office request first?
Start with the licence or exemption entry, the ownership list, the audited accounts, the monthly net returns from an administrator statement, and the fee schedule with a worked example. These 5 items cover the firm, the record, the operations and the terms, and they point to the follow-up questions for the people and process checks.
Why call former colleagues of the manager?
References test the biography against a second source. Calls to 2 former colleagues or employers per key person show how the person works, why they left previous roles and how others rate their judgment. Consistent answers build confidence, while gaps tell the family office where to ask more questions before any commitment.
How often should a family office update the file?
Refresh the file once a year for each manager and add a short update after a key event, such as a senior departure, a sharp rise in assets or a change of strategy. Rate the 6 headline items as clear, open or concern, and compare each year with the previous file.
Test your knowledge
1. How many checks make up the manager due diligence routine on this page?
- 4
- 6
- 10
Show the answer
6.
2. What confirms a licence number claimed in a brochure?
- The manager’s own presentation
- A friend’s recommendation
- The public register of the regulator
Show the answer
The public register of the regulator.
3. Where should track record figures come from?
- An administrator or custodian statement
- A marketing slide
- A press article
Show the answer
An administrator or custodian statement.
4. How many former colleagues are called per key person?
- 1
- 2
- 5
Show the answer
2.
5. How often should the file be refreshed for each manager?
- Once a year
- Every 10 years
- Only at the start
Show the answer
Once a year.
About the author
Stéphane Jambu
President, EQOS Forecast Asia
Stéphane Jambu leads EQOS Forecast Asia and works as a consultant in e-commerce, search visibility, and AI. LinkedIn profile
Sources: EQOS Asia method page (eqos-asia.com/method.html), EQOS Asia private page (eqos-asia.com/private.html) and contact page (eqos-asia.com/contact.html), consulted on 23 October 2026. Page updated on 23 October 2026.