Investment management due diligence is at a crossroads. While the pressure to modernise has never been greater, a significant number of firms remain anchored to fragmented workflows and outdated processes that quietly drain efficiency and introduce unnecessary risk.
In the latest episode of The Legal Zeidgeist podcast, host Kate Horgan sits down with Zeidler Group head of due diligence Mathilde Stich to examine the current state of due diligence in 2026.
The conversation cuts straight to a challenge many practitioners will recognise: the persistent breakdown of due diligence processes at key pressure points.
Stich noted that breakdowns in due diligence are happening in two places. The first is the endless back and forth and feedback loops. When a questionnaire is submitted typically there are gaps or more clarification is needed, which can take weeks or months, especially if there is fragmented data, they said.
The second issue is post data collection and the fund manager’s assessment is pending. Identifying risk areas and forming a decision takes time and coordination, which can slow down processes.
Stich added, “Technology, especially AI, has significantly improved pre-filling and the reuse of existing information, saving time and reducing duplication efforts on the respondents side.”
During their discussion, they cover why the human judgement is critical and how firms can improve operations to remove their bottlenecks.
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