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Portfolio Watchlist Criteria Template

Three documents and three sheets that date when a trigger fires against when a partner actually responds, not only whether the trigger was right.

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Risk Register

[Fund] — Portfolio Watchlist

One row per company currently or recently flagged, not the whole portfolio. A blank register is the statement that nothing has fired.

CompanyTierTrigger metDate identifiedStatusRelated prior alert

The last column is what a rule-based trigger test cannot see about itself: whether an earlier, smaller alert on the same issue already fired and went unactioned before this one did.

Marrowfield Labs' cash-out date crossed into Tier 1 territory in April, and the partner call the fund's own escalation criteria call for within five business days happened on 11 May, two business days late. Read on its own, that looks like a minor miss. The same underlying reporting gap first tripped a Tier 2 alert in February, fifty-nine days earlier, and nobody closed it. Counted from that first alert instead of the escalation, eighty days passed between a rule firing and a partner actually getting on a call, not two.

Every portfolio watchlist page on page one lists red flags: declining metrics, missed reporting, a departure. None say what happens after one fires. A rule that spots risk and a rule that gets a timely response look identical the moment they trigger. Escalation criteria, like the portfolio monitoring template this pack reads from, are built to detect, not to track what happens next. Draycott Mobility's Tier 1 trigger had no history behind it and got a call one business day ahead of target, which a dated response clock can show and a checklist cannot.

Invest Europe's Professional Standards Handbook tells a GP to take rapid action once monitoring reveals a portfolio company is not performing, without defining what rapid means or requiring a record of when action actually followed. Lenders already formalise that gap: the OCC's Comptroller's Handbook on leveraged lending requires banks to set a clear, quantifiable timeframe for every adversely rated borrower's action plan, reviewed regularly for accuracy. A venture or growth portfolio watchlist rarely borrows either the deadline or the review.

Four of nine companies carry a watchlist entry, and one traces back to a Tier 2 alert nobody closed

The Risk Register, the Runway Alert Register, the Action Tracker and the Watchlist Criteria behind them.

Risk Register

Illustrative, for the fund's nine-company portfolio reviewed on 30 April 2026. Only companies carrying an open or recently closed trigger get a row.

CompanyTierTrigger metDate identifiedStatusRelated prior alert
Marrowfield LabsTier 1Cash-out inside window; three periods missed30 AprOpenTier 2 alert, 20 Feb, never closed
Draycott MobilityTier 1Cash-out inside nine months30 AprClosed 8 MayNone
Fenwick NutritionTier 2One period missed30 AprClosed 12 MayNone
Windrush MaterialsTier 2Figures older than 90 days30 AprOpenNone
Portfolio9 companies4 carry an entry30 Apr2 open, 2 closed1 of 4 escalated from an unclosed alert

Four of nine companies carry a watchlist entry this quarter. The other five are absent from this register by construction, not by a judgement call: nothing has fired against the escalation criteria this cycle.

Runway Alert Register

The cash-out-date subset of the Risk Register, with the full response clock. Business days, not calendar days.

CompanyCash-out dateIdentifiedTargetActual responseVs target
Marrowfield Labs8 Nov 202630 Apr7 May11 May2 business days late
Draycott Mobility24 Dec 202630 Apr7 May6 May1 business day early

Both companies closed within a couple of business days of target. Only Marrowfield's row carries an unclosed Tier 2 alert from 20 February behind it. Counted from that first alert instead of the identification date this register uses, eighty days passed before a partner got on a call, not eleven.

Action Tracker

The decision layer underneath the register. A status of open with no next checkpoint is not allowed to exist here.

CompanyTierDecisionDecided onStatusNext checkpoint
Marrowfield LabsTier 1Bridge financing conversation opened, contingent on Jan–Mar actuals within 10 business days11 MayOpen25 May
Draycott MobilityTier 1Covenant compliance certificate moved from quarterly to monthly; no capital action6 MayClosed 8 MayNone
Fenwick NutritionTier 2No action needed; package received before the next due date12 MayClosed 12 MayNone
Windrush MaterialsTier 2Cadence change from quarterly to monthly proposed for the board30 AprOpen30 Jun

Two of the four decisions closed without any capital or governance action at all, once the underlying fact was checked. A watchlist earns its keep on those rows too, not only on the ones that end in financing.

Watchlist Criteria: the two clocks

What a fired trigger owes the partnership, once your escalation criteria have already fired it.

TierCoversResponse owed
Tier 1Cash-out inside the going-concern window or nine months; three periods missed; covenant breach; founder departure; punitive down roundPartner call within 5 business days
Tier 2Cash-out inside fifteen months; burn or revenue restated past threshold; a metric stops reporting; one period missed; figures older than 90 daysWritten request and review within 15 business days

Two ways to measure the same company

Measured fromMarrowfield LabsDraycott Mobility
The final tier's own target2 business days late1 business day early
The first alert on the same issue80 calendar days6 calendar days

The final clock alone makes both companies look like a minor miss or an on-time response. Only the register that dates the first alert, not just the last one, shows that one of them is not a two-day story.

What's in the pack

01

Risk Register

One row per flagged company, with the trigger, the date identified, and any related prior alert behind it

02

Runway Alert Register

The cash-out-date subset of the register, with the full response clock in business days against each tier's target

03

Action Tracker

The decision layer underneath both registers: what got decided, by whom, and the next checkpoint date

04

Watchlist Criteria

The two response clocks a fired trigger owes the partnership, and what actually closes an entry

05

Intervention Options Note

A fixed menu by trigger category, with what each option does not fix stated beside what it does

06

Partner Brief

The one-page format prepared before a Tier 1 call, not a summary written after it happened

07

Response Clock Sweep

Weekly check of every open entry against its response target, and any newly crossed cash-out threshold

How it works

  1. 1

    Import the trigger

    Whatever your escalation criteria already flagged, or a reporting gap a founder update analysis surfaced on its own, with the tier and the date the condition actually became true.

  2. 2

    Date the identification

    Log the day it was actually identified, separate from when the condition became true, since a review cadence and a continuous rule rarely catch it on the same day.

  3. 3

    Weigh the options

    Pick from the fixed menu by trigger category, and read what the chosen option does not fix before treating it as a full response.

  4. 4

    Close on a decision

    Not on silence. Log the decision, and either the outcome or a next checkpoint date, so an open row with nothing scheduled cannot exist.

Frequently asked questions

Why does the response clock matter if the trigger fired correctly?

Because a correct trigger and a timely response are two separate facts, and only one of them is what the escalation criteria test for. Marrowfield Labs' Tier 1 alert was correct and current, computed from restated figures on the scheduled review date. The response to it still landed two business days past target, and that gap is invisible unless something dates it.

Why measure from the first alert instead of the one that escalated?

Because the escalation is often not the first sign. Marrowfield's Tier 1 trigger traces back to a Tier 2 alert that fired fifty-nine days earlier and was never closed. Counted from the escalation alone, the response looks two business days late. Counted from the first alert, eighty days passed before a partner acted, which is the number that actually describes what happened.

How is this different from the reporting standard's escalation criteria?

The escalation criteria decide whether something fires, tested against restated figures on a fixed schedule, which is the discipline this pack reads from rather than repeats. This pack starts one step later, at the moment a trigger already fired, and tracks the response clock, the options considered, and the decision, none of which a trigger test alone can see.

Does a Tier 1 trigger mean the position gets written down?

No. A trigger is a signal to respond on a stated clock, not a valuation conclusion. What a flagged company's numbers imply for the position itself, and whether the portfolio's shape still matches the fund's intended construction, are different questions answered in the investment committee memo and in a portfolio construction review, not here.

Does a closed entry feed the next board meeting or LP update?

It can, and it should read the same restated figures either way. A closed Tier 1 entry with a bridge conversation opened is exactly the kind of prior commitment a board meeting pre-read should carry forward. It is exactly the kind of support a fund can later evidence in its own portfolio support log.

Should every flagged company end in financing or a departure?

No, and in the worked quarter, none of the four did. Two of the four entries closed with no capital or governance action at all, once the underlying fact was checked. A bridge conversation is the top of the runway menu, used here for the one company carrying an unclosed prior alert; reserve implications get modelled separately once a direction is chosen.

What format are the downloaded files?

Word documents for the watchlist criteria, the intervention options note and the partner brief, and CSV for the three sheets. The documents open in Word, Pages and Google Docs. The sheets open in Excel, Numbers and Sheets with the columns intact, and no conversion step in between.

Find out which of your flagged companies are past their response target

Send your escalation criteria or the reporting behind them. The first pass builds a Risk Register dated by identification, not just by whether a trigger currently holds.

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