How are LPs vetted?

During fundraising, how do funds vet their LPs? I imagine there are criteria for what kind of LPs they won't take money from, like if they are from a sanctioned country individual. 

What else goes into these decisions and are there published criteria I can look up anywhere?>

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This is where KYC and AML checks come in.

Other factors for who to let in or not may include - is the LP a strategic partner beyond just financial capital (co-invest, warehousing, etc.), are they a "stamp of approval", how much $ are they bringing in, can they scale over time with the firm as AUM increases, are they a respected thought partner / do they have some technical or sector expertise, are they a LT investor or not, do you think they'll be a huge pain in the ass, prior relationship or not, etc. Then of course GPs can make their decisions on alignment of values, not wanting to take capital from a certain country, things like that. 

 

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