Angel Studios 001, Inc.

Key economics

Preferred return

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Hurdle rate

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LP / GP split

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GP catch-up

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GP clawback

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GP commitment

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Diligence findings (20 · 5 high/critical)

• high
  DDQ 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.
• high
  DDQ 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.
• high
  DDQ 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.
• high
  DDQ gap: What is the preferred return (hurdle) rate offered to LPs?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.
• high
  Document-quality defect — Angel Studios SPV - Cabrini, Inc. vs Angel Studios 001, Inc.Auditor's report and financial-statement notes are addressed to 'Angel Studios SPV - Cabrini, Inc.' — the entity's prior name — not the current issuer name 'Angel Studios 001, Inc.' appearing on the cover and throughout the offering circular.
• medium
  DDQ 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.
• medium
  DDQ gap: Is there a GP catch-up, and at what rate?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.
• medium
  DDQ gap: What distribution-waterfall structure does the fund use?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.
• medium
  DDQ 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.
• medium
  Numeric inconsistency — $5,000,0000 — extra zero in milestones tableThe 'Total Use of Net Proceeds' cell in the Plan of Operations milestones table reads '$5,000,0000' (ten million) instead of '$5,000,000' (five million) for the 100%-sold scenario.
• medium
  Numeric inconsistency — Use of Proceeds table — Net Proceeds vs Total Use of Net Proceeds at 25% scenarioNet Proceeds at the 25%-sold scenario is stated as $1,100,000 after deducting $150,000 in fees from $1,250,000 gross, but the 'Total Use of Net Proceeds' row in the same table shows $1,250,000 — i.e., the gross amount, not the net.
• low
  DDQ 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.
• low
  Spelling / typo — COMISSIONCover-page disclaimer misspells 'COMMISSION' as 'COMISSION': 'THE COMISSION HAS NOT MADE AN INDEPENDENT DETERMINATION.'
• low
  Spelling / typo — THE UNITED STATE SECURITIESCover-page disclaimer reads 'THE UNITED STATE SECURITIES AND EXCHANGE COMMISSION' — missing the 'S' in 'STATES.'
• info
  Spelling / typo — explouitDescription of Business section misspells 'exploit' as 'explouit': 'agreeing to market, distribute, and otherwise explouit the Picture.'
• info
  Spelling / typo — incuredFootnote to the Use of Proceeds table misspells 'incurred' as 'incured': 'additional professional fees that may be incured after the date of this Preliminary Offering Circular.'
• info
  Spelling / typo — IssuranceStatement of Stockholders' Equity misspells 'Issuance' as 'Issurance': 'Issurance of Common Stock.'
• info
  Spelling / typo — rasePlan of Distribution section misspells 'raise' as 'rase': 'we will not be required to return any funds to you if we do not rase the maximum offering amount.'
• info
  Spelling / typo — reimbusedSubstantive sentence misspells 'reimbursed' as 'reimbused': 'the Company will be reimbused (or will reimburse its Parent Company) for all other marketing and distribution expenses.'
• info
  Spelling / typo — third_partiesBody text uses an underscore instead of a space: 'to license the Picture to third_parties for distribution on their distribution platforms.'

DDQ readiness — 31% covered

4 answered · 0 partial · 9 gaps of 13 standard questions.