Data room
A secure online space where a manager shares documents with investors.
It normally holds the deck, PPM, LPA, financials, track record evidence and diligence responses. Good data rooms show who opened what, so the manager can follow up at the right moment.
A typical fund data room has folders for the fund documents, track record support, team and references, portfolio information, operations and compliance, the DDQ and financial statements of prior funds. Permissions control who sees what, and watermarking discourages forwarding.
Analytics on who opened which documents and for how long show where LPs are in their diligence. An LP that reads the LPA and the track record backup is likely moving toward a decision, while one that opened only the deck may need a follow-up.
Worked example
A GP opens the data room to 25 LPs after first meetings. Over three weeks, six LPs open the track record backup and the draft LPA. The GP calls those six first, and four of them ask for reference calls within the week.
Common questions about data room
What should be in a fund data room?
The deck, PPM, LPA and subscription documents, track record support with deal level data, team biographies and references, the DDQ, compliance policies, audited financials of earlier funds and any material agreements.
When should a GP open the data room to an LP?
Usually after a first meeting shows real interest. Opening it too widely too early leaks information and makes engagement signals harder to read.