How do LPs detect the early warning signs in ODD?

While many allocators rely on structured diligence, some of the most revealing signals appear long before the formal process begins. At GAIM Ops Cayman 2026, Rebecca Heun breaks down the early indicators that LPs can spot from the very first interaction.

Rebecca Heun, Managing Director & Co‑Head of Operational Due Diligence at Aksia, highlights the first red flags that surface in ODD: personality dynamics that immediately show operational strain, and background‑check findings that uncover outside business activities or divided commitments, especially common among emerging managers. She further emphasises the importance of reviewing documentation early and testing it on‑site exposes policy‑versus‑practice gaps that reveal where conflicts sit inside the organisation.

For a clear look at how early behavioural cues, documentation inconsistencies and evolving diligence techniques shape modern ODD, watch the full interview with Rebecca Heun:

“Businesses don’t commit fraud. People do.”

— Rebecca Heun, GAIM Ops Cayman 2026

Core insights from the interview

• Personality dynamics as early operational red flags
• Background checks revealing outside business activities
• Policy vs practice gaps exposed on‑site
• Why misaligned incentives now outweigh fraud risk
• How AI erodes original language and intent
• Emotional intelligence as a core diligence tool

Inside the interview

Early interactions often reveal more than managers intend to show. Insights from Rebecca Heun highlight how personality dynamics (whether someone dominates the discussion or consistently defers) can immediately point to operational strain. As well as this, background checks add another early layer, frequently surfacing outside business activities or divided commitments, especially among emerging managers who still have parallel roles.

Documentation review becomes another early filter. When LPs read policies in advance and test them on‑site, inconsistencies between stated procedures and daily behaviour surface quickly. These gaps often expose where conflicts or operational weaknesses sit long before the full diligence process unfolds.

A broader shift in ODD is also underway. Rebecca's insights also highlight, that while the industry has long been effective at catching outright fraud, today’s challenges more often centre on misaligned incentives. Including: continuation vehicles, affiliated transactions, NAV lines, sub‑lines and other structural conflicts. While, the Fraud Triangle remains a critical lens: pressure, opportunity and rationalisation must all be present, reinforcing that misconduct stems from people, not processes.

Technology adds another layer of complexity. As both LPs and managers increasingly run materials through AI tools, original language and intent risk being lost. Insights from Rebecca stress that ODD cannot rely solely on AI‑scrubbed documents; human interpretation, tone and context remain essential to understanding character and intent.

The human element ultimately ties everything together. Non‑verbal cues, room dynamics and what goes unsaid can be as revealing as formal responses. This is further reinforced by her emphasis on emotional intelligence. Reading intent, energy and alignment, remains central to modern ODD, and instinct still plays a decisive role when something doesn’t feel right.

Want more conversations like this? Join the community at GAIM Ops West, October 25–27, 2026 at Waldorf Astoria Monarch Beach, CA.