2026 Eternal IC Stress Test
for Platform Builders

The 3 Questions

Every investment committee asks these before writing a check.

The IC Stress Test covers the 3 questions that separate operators who attract capital from those who chase it. Score yourself across 12 criteria to identify exactly where your platform stands before your next capital conversation.

Question 1: Is the platform investable?

Investment committees evaluate whether the business model supports institutional capital. This means recurring revenue quality, defensible market position, scalable operations, and a clear value creation thesis that goes beyond deal-by-deal returns.

Score yourself (0-4): Do you have a written investment thesis? Can you articulate your platform edge in one sentence? Is your revenue model documented with trailing 12-month data? Does your operating model scale without proportional headcount increases?

Question 2: Is the operator credible?

Track record, team depth, and governance structure determine whether capital partners trust you with their money. This is not about credentials on a resume. It is about demonstrable execution across market cycles.

Score yourself (0-4): Can you show a completed deal cycle from acquisition through disposition or stabilization? Do you have audited or reviewed financial statements? Is there a team beyond the principal? Do you have institutional references who will take a call?

Question 3: Is the capital structure sound?

Even strong operators lose deals when the capital structure does not hold up under stress. LPs and lenders look at leverage ratios, waterfall structures, fee alignment, and downside protection before committing capital.

Score yourself (0-4): Is your target leverage ratio documented and stress tested? Does your waterfall align GP and LP interests? Are your fees within market norms for your strategy? Can your capital structure survive a 20% revenue decline?

Your Score

10-12: You are IC ready. Refine your delivery.

7-9: You have the foundation. Prioritize the gaps.

4-6: Invest the time before approaching capital sources.

0-3: Stop capital conversations until you can answer these questions.