Counterparty work for a single-family office is not a heavier version of the standard product. The reader is the client, the threshold at which the file becomes actionable is set by the family rather than by an external regulator, and the file has to survive the advisor as well as the counterparty.
A single-family office running counterparty diligence on a proposed co-investor faces three audiences at once. The principal, whose tolerance for the counterparty depends on considerations that are not written down. The family's professional advisors, who will read the file for the questions they are professionally required to ask. And the counterparty themselves, whose future behaviour toward the family will be shaped by how the diligence was conducted.
The threshold for what counts as a material finding is set inside the family's own risk framework rather than borrowed from a compliance manual. The questions the professional advisors will ask are anticipated in the structure of the file. The diligence is conducted in a way that survives the counterparty learning that it was conducted, which the counterparty usually will. Discretion is a substantive requirement, not a courtesy.
Define the three audiences and the threshold in writing before the work starts. A supplier who produces a compliance-style file will satisfy one audience and misread the other two.