Investment Committee Memo · Waterfalls
AAA Storage Growth Fund II, LLC
AAA Storage Management Company, LLC · Self-Storage · Equity · Vintage 2018
55
Waterfalls composite LP-favorability score (0–100)
77
LP take (absolute)
55
Pref quality
0
Fee drag
62
GP alignment
40
Timing risk
Key economics
- Preferred return
- 7%
- Hurdle rate
- —
- LP / GP split
- 70% / 30%
- GP catch-up
- Yes
- GP clawback
- —
- GP commitment
- 8%
Diligence findings (5 · 3 high/critical)
- highDDQ gap: Does the fund engage an independent auditor?The offering documents don't answer a standard institutional DDQ question (Governance). An allocator will ask this directly — the GP should be ready with an answer.
- highDDQ gap: Does the fund have a GP clawback provision?The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.
- highFull (100%) GP catch-up to a 30% carryA 100%-rate catch-up routes every post-pref dollar to the GP until it has caught up to its full carry, before the LP sees any split. Combined with a high carry this materially front-loads GP economics. A graduated (e.g. 50/50) catch-up would keep the LP in the cash flow during the tier.
- mediumDDQ gap: What is the target offering size?The offering documents don't answer a standard institutional DDQ question (Structure). An allocator will ask this directly — the GP should be ready with an answer.
- lowDDQ gap: What is the minimum LP investment?The offering documents don't answer a standard institutional DDQ question (Structure). An allocator will ask this directly — the GP should be ready with an answer.
DDQ readiness — 62% covered
8 answered · 1 partial · 4 gaps of 13 standard questions.