What Your KYC Process Signals To Investors

Article by Zarina Sattarova, HFQ Fund Relationship Manager.

For most managers, KYC is a regulatory box. A necessary one – something to be completed, ticked off, often handed off to a service provider. For most LPs, it is the first real interaction with the fund after the decision to commit has been made, and the first time they see how the manager actually operates day to day. By the time onboarding starts, the fundraise has done its job. Interest has been built, terms have been agreed, and attention has shifted to getting capital deployed. That is exactly the moment a clunky KYC process can undo months of relationship-building.

The data on this is sharper than most GPs realise. In CSC’s 2025...