How do you typically evaluate potential financing partners?

Question

One question I ask every investor we work with is:

“How do you typically evaluate potential financing partners?”

Most capital providers forget that even though we’re the ones evaluating the deal, the other side is underwriting us too. It goes both ways. And the answer to this question is often the first signal of whether there’s real alignment.

It reveals what someone values most in a partnership. Some focus on speed. Others prioritize transparency or flexibility.

None of those are wrong. But the reasoning behind the answer shows how someone approaches collaboration, what they expect from the people they work with, and whether you’ll be able to meet those expectations. If you demand honesty, you have to be willing to deliver it as well.

This comes up often from a lending perspective, but it applies everywhere:

• GPs vetting LPs
• LPs vetting sponsors
• Co-GPs choosing each other
• Lenders partnering on deals

GPs vetting LPs

LPs vetting sponsors

Co-GPs choosing each other

Lenders partnering on deals

Everyone is underwriting someone, not just the deal.

So before entering a partnership, ask this question. It’s not only about what you’re looking for, but also about what they’re looking for in you.

What’s the one question you always ask before partnering with someone?

— Anna Kogan, LinkedIn

James Jones · Answer

One question I ask every investor we work with is this:

“How do you typically evaluate potential financing partners?”

Most capital providers forget something important. Even though we may be underwriting the deal, the other side is underwriting us as well. It goes both ways. The answer to this question is often the first real signal of whether there is true alignment.

It reveals what someone values most in a partnership.

Some prioritize speed.

Others care more about transparency, structure, or flexibility.

None of those answers are wrong. But the reasoning behind the answer matters.

It tells you how someone approaches collaboration, what they expect from the people they work with, and whether you can realistically meet those expectations. If you demand honesty, you have to be willing to deliver it. If you value flexibility, you need systems that support it.

This comes up often from a lending perspective, but it applies everywhere:

GPs vetting LPs

LPs evaluating sponsors

Co-GPs choosing partners

Lenders partnering on deals

Everyone is underwriting someone, not just the deal.

Before entering any partnership, ask this question.

It is not only about what you are looking for.

It is about understanding what they are looking for in you.