Investment Committee Memo · Waterfalls
Benchmark Real Estate Investment Fund, LLC
Benchmark Companies · Unknown · Vintage 2015
40
Waterfalls composite LP-favorability score (0–100)
85
LP take (absolute)
8
Pref quality
15
Fee drag
10
GP alignment
8
Timing risk
Key economics
- Preferred return
- —
- Hurdle rate
- —
- LP / GP split
- —
- GP catch-up
- —
- GP clawback
- —
- GP commitment
- —
Diligence findings (14 · 4 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.
- highDDQ 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.
- 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: 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.
- 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.
- mediumNumeric inconsistency — BCM II formation yearBCM II (the Manager) is stated to have been formed on 'January 6, 2022' in the Investor Suitability section but 'formed in 2021' in two places in the Description of Business section — a one-year factual conflict about the manager entity.
- lowDocument-quality defect — Mailing address zip codeThe mailing address zip code is stated as '49514' on the cover page and in the Security Ownership table but as '46514' in the Company Information body text — one of the two is erroneous.
- lowSpelling / typo — BMC IIThe acronym 'BCM II' (Benchmark Capital Management II) is misspelled as 'BMC II' — a letter-transposition typo — in the opening sentence of the 'BCM II (Fund Manager) Business' section.
- infoSpelling / typo — counitesThe word 'counties' is misspelled as 'counites' in the Glossary definition of 'West Michigan'.
- infoSpelling / typo — Fannie Mae of Freddie MacSubstantive text reads 'Fannie Mae of Freddie Mac qualifications' — the conjunction 'of' should be 'or', creating a grammatically broken and potentially confusing sentence in the business description.
- infoSpelling / typo — perspective MortgagorThe word 'perspective' is used twice in place of 'prospective' when describing potential borrowers — a malapropism that also appears in the LTV guidelines section.
- infoSpelling / typo — received receiveDoubled verb in broker-dealer compensation paragraph: 'has received receive a one-time due diligence fee' — the word 'receive' appears to be a drafting remnant left after revision.
DDQ readiness — 38% covered
5 answered · 1 partial · 7 gaps of 13 standard questions.