Most deal teams aren’t missing value because they’re lazy. They’re missing it because they’re blind — structurally.
Even among top-tier Family Offices and Private Equity firms, due diligence is still treated like a checklist — box-ticking sprint, not a real interrogation.
Legal? ✔️ Financials? ✔️ Cap table, contracts, growth narrative? ✔️✔️✔️
But what about…
Tech stack behind the product?
Digital footprint behind the customer pipeline?
Founder’s leadership and culture impact?
Operational choke points and broken workflows?
Marketing tech debt and revenue attribution mess?
The real ownership and dilution risk hidden in the cap table?
Compliance, KYC/KYB, and money flow that could blow the deal?
Cybersecurity posture and intelligence threats lurking unseen?
Most don’t get looked at — until it’s too late…
What’s Happening in the World?
I Paxos Settlement Over DD Failures
Paxos Trust has agreed to a $48.5 million settlement with the New York State Department of Financial Services (NYDFS) over allegations of inadequate due diligence in its partnership with Binance. The NYDFS charged that Paxos failed to conduct adequate due diligence on Binance and had systemic deficiencies in its anti-money laundering (AML) practices. As part of the settlement, Paxos will pay a $26.5 million fine and invest $22 million to enhance its compliance infrastructure.
II OpenAI spearheads one of Europe’s biggest data centers with 100,000 Nvidia chips in Norway.
OpenAI, in partnership with Nscale and Aker Solutions, is developing a massive AI facility — @Stargate Norway — near Narvik. It will host 100,000 NVIDIA GPUs by the end of 2026 and run on renewable energy. Positioned among Europe's most significant AI infrastructure investments, the facility underscores the need for JV readiness and infrastructure diligence.
Note: one of my PE contacts allocated +15m, if you want to know more - feel free reach out
https://www.cnbc.com/2025/07/31/openai-backs-ai-data-center-in-norway-with-100000-nvidia-gpus.html
III London hit with a slowdown in mid-market deal activity
According to fresh analysis from professional services giant KPMG, the volume of mid-market private equity investment fell 14% in the capital, with just 168 deals completed.
https://www.cityam.com/london-hit-with-a-slowdown-in-mid-market-deal-activity/
IV Trump to Sign an Order Allowing Private Equity and Crypto Into 401(k)s
President Trump’s executive order now allows private equity and crypto allocations within 401(k) plans. This expansion means deal volumes could increase — but only for investors who can confidently assess structural integrity across complex assets.
https://www.barrons.com/articles/crypto-private-equity-401k-executive-order-280abccd
Word to Ponder: Vigilance
From Latin vigilare — to keep awake, watch carefully.
In the world of deal-making, vigilance is your greatest asset. It’s the continuous, alert scrutiny that transcends surface checks and uncovers the hidden faults others miss. Vigilance is what turns due diligence from a routine process into a forensic art — safeguarding investments and unlocking true value.
Without vigilance, even the best deals can blindside you.
Winners & Losers
Winners
PayPal Australia, Gold Corporation - The Perth Mint & NAB (AML Remediation Wins). All three companies completed their compliance remediation programs under AUSTRAC’s supervision. As a result, their Enforceable Undertakings (EU) have been successfully lifted — signaling that effective, forensic-level DD and governance improvements truly pay off (Dwyer Harris).
Monzo Bank (Improved Onboarding Protocols) Despite a hefty £21M fine by the FCA for past onboarding failures, Monzo has since fortified its KYC and risk monitoring frameworks. Their improved processes now serve as a case study in effective remediation (Press release).
Losers
Charlie Javice misled JPMorganChase into acquiring her student-loan startup, Frank, by fabricating nearly 4 million fake users. The lack of granular verification (even amid privacy concerns) turned $175M into a cautionary headline (Forensic Risk).
Due Diligence Disaster: Credit Suisse’s supply chain funds tied to Greensill Capital collapsed after deep structural risks went unnoticed. Its auditor in Australia was even banned for failing to perform basic audit duties, spotlighting catastrophic oversight (Caproasia).
ASIC is currently pursuing Fortnum for inadequate cybersecurity risk management after a data breach exposed personal client data. This highlights how security is an essential — not optional — layer of due diligence. (Dwyer Harris business lawyers).
"Winners" show us that even high-profile lapses can be turned around — with commitment, forensic diligence, and structured remediation, while "losers" reveal the steep price of structural blindness — missing red flags in customer lists, supply chain models, legal exposure, or cybersecurity can spell disaster.
Two Strategic Takeaways
I Due Diligence is not a Checkbox
With rising complexity in AI, biotech, and cross-border investments, surface-level checks are exposing investors to massive risks. Cases like Temu’s supply chain transparency issues and Theranos-style biotech exaggerations in stealth startups highlight how DD failures now translate directly into regulatory and reputational blowbacks.
- Lane Merrifield, Founder of Disney Canada
Investors and acquirers must evolve due diligence into an intelligence function — embedding forensic, behavioral, and systems-level insight into every deal and founder bet.
II Structural Blindness in Governance is the (new) value leak
Large corporates and funds are losing billions not from lack of capital or strategy, but from internal misalignments, opaque structures, and legacy decision trees. For instance, Red Lobster’s bankruptcy and Missfresh’s collapse in China reveal how seemingly sound orgs rot from inside — undetected until it’s too late.
Don’t just evaluate businesses — interrogate their structures. Conduct periodic audits of governance, incentives, and inter-departmental logic to detect early signs of rot.
Offers & Opportunities
I 360° Due Diligence & Intelligence
Identify red flags early & avoid blind spots = save millions of Dollars/Euros. Execute high-stakes deals with confidence.
Key Partners | We are an exclusive alliance of selected companies and advisors that work for global PEs, FOs, and Institutions with the only purpose to maximise investment ROI. Our clients come to us through trusted intros.
Financial, tech, digital, legal, operational, commercial, cap table, and people audits — intelligence-multy-layered DD designed to pressure-test investments/acquisitions.
We give you the clarity to act boldly and the insight to execute confidently. Think of us as your third eye in complex transactions.
If you're a PE firm, Family Office, or Institution deploying 5M+ into an asset, send us your thesis, or ask us to vet a deal. Feel free to get in touch: https://qla.ee/contact/
II Strategic Advisory & Wealth Structuring
Smart capital needs smart structure.
We design bespoke frameworks for UHNWIs, family offices, investors, and founders to protect capital, pool investor funds, and structure high-impact deals.
Whether you’re navigating M&A, launching a fund, or managing cross-border wealth, we provide the compliance, governance, and negotiation edge to avoid legal and tax pitfalls, reduce internal conflicts, and accelerate deal velocity.
The right structure isn’t a bonus — it’s the difference between a 7-figure upside or a costly leak.
Explore possibilities: https://qla.ee/wealth-structuring
A Captivating Video | QLA Podcast #54
In this episode, I sat down with Attila Tóth – Digital Due Diligence Expert, Author of HYPER, and Co-Founder of Cognitive Creators.
We unpacked how investors are losing millions when the digital and tech sides of deals are not properly audited.
And also broke down what early-stage startups are missing in their branding and marketing — and why this is costing them investor attention, competitive edge, and sales growth.
This newsletter is for those who refuse to settle.
P.S. Make sure to hit that notification bell 🔔 as well, I look forward to connecting with you in next issue.
- Stay ahead.