Diligence
Diligence, in writing
Source Private Securities is your sponsor and point of contact for every offering we bring to investors. Before an offering reaches investors, we diligence two things: the people behind it and the plan behind the numbers. Source provides the findings in writing in each offering's Source Diligence Report.
Two sections, one report
Character Review
The people. Every entity in the sponsorship and every named individual, reviewed against five fixed standards, with the findings reported in writing.
Pro Forma Assumption Review
The plan. The deal's performance assumptions and return projections, examined line by line so investors can see what the numbers rest on.
What we're looking for
Track record. How a team handles adversity. Whether they go the extra mile. Character and communication. All of it points to one question: has this team been a faithful steward of capital that wasn't their own.
"It is required of stewards that they be found faithful." (1 Corinthians 4:2)
We use a biblical standard to evaluate conduct: decisions made, people treated well when it would have been easier not to. This applies to every partner we work with, and to Source Private Securities itself.
Character Review
The full team, in writing
A deal is rarely one person. We review each entity involved and the individuals who sign for them, then publish what investors need to evaluate them as part of the Source Diligence Report in each offering's Deal Room.
Sponsor team
A written review of every entity in the sponsorship of the offering, Source Private Securities and, when applicable, a co-GP partner, including how each operates and the standard we hold them to.
Track record & execution
A written review of the operating team's performance executing similar business plans, provided to investors by Source.
Named individuals
Background information on every individual in a managing member or named signatory role. We report the result, verified and clear, rather than publishing anyone's personal file.
Sample
See a sample Source Diligence Report
Five standards we apply
Track Record
Verified performance across cycles, confirmed by references. Not just years in business. A track record is evidence of how a team has handled what has already been entrusted to it.
How They Handle Adversity
Evidence of what the team did when a deal didn't go well. Did they protect themselves first, or their investors first? Every team looks capable when the deal is going well; we look for what they did when it wasn't.
Going the Extra Mile
Documented instances of doing more than an agreement required. Absorbing a cost, giving up part of a return, protecting an investor beyond what was owed. This is the standard behind our own decision to give up carry on an underperforming deal. We hold every team to what we hold ourselves to.
Character and Integrity
How the people involved have treated others when it would have been easier not to.
Communication
Evidence of consistent updates, including when there's nothing major to report, and investors who will say so unprompted. Not a team's own claim of 'we communicate well.' Investors are emotionally attached to what they've entrusted, not just financially exposed, and that attachment deserves regular, transparent contact.
These are the criteria we scrutinize, and we publish what we find.
Disclaimer: Past performance is evidence, not a promise. This review reflects our own evaluation and isn't a guarantee, endorsement, or assurance of any partner's future conduct.