SD-03.6 — GP & Manager Monitoring
Business Domain: BD-03 Manager & Fund Investment (Front office) · Applies: BOTH
Purpose
Monitors the performance, portfolio and organisational health of appointed managers. Selecting a manager is a point-in-time decision; GP & Manager Monitoring is the standing oversight that follows it — across both the fund-commitment and the segregated-mandate paths. It watches whether the manager is still delivering against the case it was hired on, whether the organisation behind it is stable, and whether anything has changed enough to warrant the watch list or a place on the SD-03.8 termination agenda.
Service Operations
- Monitor manager performance — track return against benchmark and against the underwriting case the manager was selected on.
- Monitor organisational health — team stability, ownership and incentive changes, and key-person events that trigger a key-person provision.
- Participate in the LPAC / advisory board — represent the institution on the limited partner advisory committee — conflict reviews, GP-led secondary and continuation-fund approvals, fund amendments.
- Monitor the manager’s portfolio — review the holdings and their performance, including look-through to the underlying assets.
- Operate the manager watch list — apply and clear the formal watch status that triggers enhanced scrutiny and feeds the retention decision.
- Review valuations and capital accounts — examine the manager’s marks and reconcile the institution’s capital account and cash flows.
Inputs and outputs
- Inputs: the manager’s reporting — performance, portfolio, capital-account statements; the underwriting case from SD-03.2 and SD-03.4; LPAC materials.
- Outputs: GP and manager scorecards, the watch list and key-person flags — consumed by SD-03.8 Re-Up & Manager Relationship Management (the retention decision) and by BD-07 Investment Risk and BD-09 Performance & Analytics.
Entities
- Consumes: Legal Entity (E-01, the manager / GP), Fund & Vehicle (PM-01), LP Commitment (PM-06); the manager’s reported holdings and valuations; the SD-03.2 underwriting case; the SD-03.4 underwriting case.
- Owns: none — the scorecard and watch list are analytical artefacts.
Standards
- No single external standard governs manager monitoring. The LPAC is the industry-standard private-markets governance body; ILPA reporting templates standardise the data a GP provides for monitoring.
Open extensions
- The boundary with SD-07.5 Look-Through Exposure Analysis — SD-03.6 monitors one manager’s holdings as oversight; SD-07.5 aggregates look-through exposure across the whole manager book for risk.
- Whether the manager scorecard warrants a record structure.