Investment Committee Memo · Waterfalls
Commonwealth Thoroughbreds LLC
Commonwealth Markets Inc. · Unknown · Vintage 2023
12
Waterfalls composite LP-favorability score (0–100)
14
LP take (absolute)
5
Pref quality
0
Fee drag
20
GP alignment
15
Timing risk
Key economics
- Preferred return
- —
- Hurdle rate
- —
- LP / GP split
- —
- GP catch-up
- —
- GP clawback
- —
- GP commitment
- —
Diligence findings (15 · 5 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.
- highNumeric inconsistency — Series Kissed by Fire ownership interest percentageThe Company's ownership interest in Kissed by Fire is stated three different ways: 14.13% on the cover page, 12.5% in the Offering Summary, and 11.77% in the financial statement notes — all purporting to describe the same post-closing interest from the same 2,098-Unit closing.
- 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.
- lowSpelling / typo — f at the conclusionBroken/garbled word at the start of a sentence — 'f at the conclusion' instead of a complete word, rendering the sentence unintelligible.
- lowSpelling / typo — preform'preform' used instead of 'perform' in a substantive sentence about administrative functions.
- infoSpelling / typo — accompanyiIg'accompanyiIg' (garbled capitalization mid-word) instead of 'accompanying' in a financial statement reference line.
- infoSpelling / typo — calender'calender' used instead of 'calendar' in the tax note describing the Series' tax year.
- infoSpelling / typo — Compnay'Compnay' is a transposition typo for 'Company' in the notes to financial statements.
- infoSpelling / typo — Ghandharvi'Ghandharvi' appears as a misspelling of 'Gandharvi', the co-owner name used consistently elsewhere in the document.
- infoSpelling / typo — ThororoughbredsFund name misspelled as 'Thororoughbreds' (extra 'ro') in the financial statements header.
DDQ readiness — 38% covered
5 answered · 1 partial · 7 gaps of 13 standard questions.