Track record questions separate sponsors who let their numbers speak from those who hide behind marketing decks. Ask these ten directly.
The questions
1. What is your realized DPI across all closed deals? 2. Show me your fully aged unrealized investments and how they are marked. 3. What was your lowest-returning deal and what went wrong? 4. How long was your average hold? 5. What percentage of LOIs you signed actually closed? 6. How many of your portfolio companies hit their underwriting case? 7. Have you ever returned capital below cost? 8. Who were your co-investors on each deal, and may I speak with them? 9. What is the longest hold in your portfolio and why? 10. How has your investment thesis evolved over the last five years?
How to read the answers
You are not looking for perfection. You are looking for honesty, specificity, and pattern recognition. A sponsor who can walk you through a loss with clear lessons is more credible than one with an unblemished record and vague answers.
If you are evaluating a transaction in this space and want a candid second look, Solender Capital is happy to compare notes. Reach out through our contact page and share what you are working on.