Dhow's Due Diligence Process — How We Evaluate Every Investment
Every opportunity presented on Dhow goes through a rigorous, multi-stage diligence process. We evaluate the team, market, financial projections, legal structure, fee fairness, and values alignment before any deal reaches investors.
Investment Memo
Every opportunity includes a standardized investment memo covering the thesis, market context, team assessment, financial projections, risk factors, fee structure, and key terms. Memos are prepared before any deal is made available to investors.
Values-Alignment Screening
Our values-alignment screening evaluates each opportunity against ethical criteria including industry exclusions (alcohol, gambling, tobacco, weapons, interest-based finance), revenue source analysis, and business model review. The screening methodology and results are documented in each memo.
Document Package
Each deal package includes an investment memo, subscription agreement, operating or partnership agreement, risk disclosures, fee schedule, and any relevant regulatory filings. Additional documents such as financial statements, pitch decks, and third-party reports are included when available.
Conflict of Interest Disclosure
All potential conflicts are disclosed in the investment memo. This includes any relationships between Dhow, the deal sponsor, and the underlying company. We maintain clear policies on co-investment, referral arrangements, and compensation structures to ensure transparency.
Frequently Asked Questions
Do you provide an investment memo for every opportunity?
Yes. Every opportunity presented on Dhow includes a standardized investment memo covering the thesis, market context, team assessment, financial projections, risk factors, fee structure, and key terms. Memos are prepared before any deal is made available to investors.
What documents are always included?
Each deal package includes an investment memo, subscription agreement, operating agreement or partnership agreement, risk disclosures, fee schedule, and any relevant regulatory filings. Additional documents such as financial statements, pitch decks, and third-party reports are included when available.
Do you verify Shariah/values compliance — and how?
Yes. Our values-alignment screening evaluates each opportunity against ethical criteria including industry exclusions (alcohol, gambling, tobacco, weapons, interest-based finance), revenue source analysis, and business model review. The screening methodology and results are documented in each memo.
How do you handle conflicts of interest?
All potential conflicts are disclosed in the investment memo. This includes any relationships between Dhow, the deal sponsor, and the underlying company. We maintain clear policies on co-investment, referral arrangements, and compensation structures to ensure transparency.
What performance data do you rely on?
We reference audited financials where available, third-party valuation data, comparable transaction benchmarks, and industry databases such as Cambridge Associates and PitchBook. Projections are stress-tested and presented alongside historical context.
What happens if new information emerges mid-offering?
Material changes are communicated to investors promptly. If new information materially affects the risk profile or terms of an offering, we issue supplemental disclosures and may pause or withdraw the offering. Investors who have already committed are given the opportunity to review updated information.
Can I speak to someone before investing?
Yes. We encourage investors to ask questions before committing capital. You can reach our team to discuss any aspect of a deal, the memo, or Dhow's process. We also recommend consulting your own financial, legal, or tax advisor before making investment decisions.