How Should an Investor Conduct Reference Checks Beyond the Manager's Chosen Contacts?

Begin with the manager's references and follow their working relationships. This can surface people with direct knowledge who were not asked to praise the manager.

Build an Independent Contact List

Start with the manager's references, then ask each person who else worked closely with the manager on a deal or through a difficult period. Seek former investors, lenders, business partners, employees, and service providers. Ask for names by role and relationship, then find contact details independently where practical. Include people from earlier firms or completed deals, as well as the current team.

Prioritize people who saw a specific event, such as a loss, delayed transaction, capital call, change in plan, or investor complaint. A lender may have seen how the manager handled covenant pressure. A former colleague may know who made decisions and how dissent was handled. Keep questions focused on relevant work conduct. Do not ask contacts to share confidential information.

Ask for Examples, Not Ratings

Use the same core questions with each contact, while leaving room to follow a useful lead. Establish what the person observed firsthand, the date, and their role at the time. Then request a concrete example. General praise has limited value unless the reference can explain what they personally saw.

• "Which investment or business relationship did you work on directly with this manager, and what was your role?"
• "How did the manager communicate when a deal missed plan or a loss became clear?"
• "Did you disagree with a decision or raise a concern? What happened next?"
• "Would you work with or invest alongside this manager again? Why?"
• "Who else had direct knowledge of that period or outcome?"

Ask whether the contact can point to a dated update, agreement, or other record that could clarify an important fact. Keep notes separate from interpretation: record the person's own account, its basis, and what remains hearsay.

Test Patterns and Discrepancies

Treat one negative account as a lead to examine, not proof. The person may have a grievance or incomplete information. A supportive investor may also have an interest in defending a relationship. Look for the same specific fact across independent accounts. Record who shares an account with whom, since several people repeating one story may not be independent sources.

Compare material claims with investor communications, deal records, and the manager's account. If a reference says bad news was delayed, ask for the event date and compare it with dated updates. If a person describes a dispute, ask the manager to respond and provide relevant documents. Record a refusal to speak or a missed call without guessing at the reason.

Keep a Usable Record

Maintain a restricted diligence file with the contact's role, relationship, conversation date, questions asked, direct observations, and open follow-ups. Mark each point as supported, disputed, or unresolved. If findings raise legal or privacy questions, talk with your attorney. For broader manager hiring, see which reference sources to request and how to investigate prior litigation or regulatory actions.

At the Family Office Club, we treat references as one input in a documented review. The goal is to learn what the manager did in practice, especially when events went off plan, and identify what still needs confirmation.

Checklist

• Build contacts beyond the manager's list through direct referrals.
• Include people who observed difficult periods and realized outcomes.
• Ask consistent questions and request specific examples.
• Separate firsthand knowledge from hearsay and opinion.
• Compare material statements with dated records and the manager's response.
• Record gaps and follow them up before reaching a view.

Go deeper: What background checks are appropriate for a fund's principals and key staff?; What due diligence questions should a family office ask a manager?; How can an investor verify a fund's reported track record?.

They keep seeking out references until they get completely comfortable.

Sources: Family Office Club investor due diligence framework, Richard C. Wilson solo transcripts, The Single Family Office. Informational only, not financial, legal or tax advice.