Investment Committee Memo · Waterfalls
AF 2018 NPL A LLC
Residential RE · Debt · Vintage 2018
37
Waterfalls composite LP-favorability score (0–100)
46
LP take (absolute)
62
Pref quality
0
Fee drag
22
GP alignment
38
Timing risk
Key economics
- Preferred return
- 10%
- Hurdle rate
- —
- LP / GP split
- —
- GP catch-up
- No
- GP clawback
- —
- GP commitment
- —
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.
- highDDQ gap: What is the LP/GP carried-interest split above the preferred return?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.
- mediumDDQ gap: Does the fund use a third-party fund administrator?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.
- mediumDDQ gap: What is the GP's capital commitment (skin in the game)?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.
DDQ readiness — 54% covered
7 answered · 1 partial · 5 gaps of 13 standard questions.