For Allocators
Know Who's Managing Your Capital Before the Market Turns
You wouldn't allocate to a fund without audited financials. Why would you commit capital to a GP without understanding how they perform when markets turn against them?
The Manager Risk You're Not Measuring
Due diligence for fund allocation covers track record, AUM, strategy, and terms. But the most consequential variable — the GP's capacity to lead under stress, adapt to market shifts, and maintain team cohesion during drawdowns — rarely gets a structured evaluation.
The market shifts mid-execution. Your fund manager keeps running the same models, citing the original thesis. By the time they pivot, two quarters of alpha have evaporated. The data was there — they just couldn't let go of the plan.
Alchemize™ brings the same rigor to manager evaluation that you already apply to financial diligence.
The Manager Readiness Level
Purpose-built for LPs and fund-of-funds evaluating GP capacity in VUCA environments. Alchemize™ assesses the constructs that matter most for capital stewards: decision-making under pressure, adaptive capacity when market conditions shift, team dynamics and communication, and the ability to balance conviction with flexibility.
Structured Video Assessment
A structured, one-way video evaluation administered online. Captures how a manager reasons through scenarios, communicates under pressure, and articulates strategic pivots — all scored against validated constructs with no interviewer bias.
Existing Content Analysis
Already have investor letters, IC recordings, or earnings call transcripts? Alchemize™ can analyze existing artifacts to generate a readiness profile — no additional time required from the manager.
The Track Record That Hid the Truth
Challenge
A family office was evaluating a $25M allocation to an emerging markets fund. The GP had a strong 10-year track record (top quartile returns), institutional LPs, and impressive credentials. On paper, it was a straightforward decision.
Assessment
The allocator requested Manager Readiness Level assessment using existing investor letters and IC recordings. The analysis surfaced:
- • High scores on analytical rigor and pattern recognition
- • Low scores on team dynamics and communication under stress
- • Red flag: GP communicated well during winning streaks but became defensive and opaque during drawdowns
Outcome
The family office requested a deeper reference check focused on GP behavior during the 2020 COVID drawdown. They discovered:
- • The GP had stopped returning LP calls for 6 weeks
- • Two junior team members had quit due to “toxic” environment during volatility
- • The GP attributed all losses to “irrational markets” rather than acknowledging portfolio positioning errors
The family office passed. 18 months later, the fund underperformed by 400 bps during the 2022 market correction, and 3 institutional LPs redeemed.
Impact
- • Avoided $25M allocation to underperforming fund
- • Protected portfolio returns and family office reputation
- • Used structured assessment to validate (and override) surface-level track record analysis
Allocator ROI Estimator
This tool provides an illustrative estimate based on industry data and your inputs. Assessment pricing varies by engagement scope and volume. Contact us for custom pricing. Not financial advice or a guarantee of performance.
Input Variables
1. Portfolio Context
2. Underperformance Risk
3. Alchemize™ Intervention
Impact Analysis
Average Allocation per GP
$50,000,000
Cost of Underperformance per GP
$1,000,000
Total Underperformance Cost
$2,000,000
Capital Preserved
$1,000,000
Total Assessment Cost
$25,000
Net Capital Impact
$975,000
ROI Multiple
39.0x
Ready to See What's Behind the Track Record?
Book a conversation to learn how Alchemize™ can strengthen your allocation process.
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