Connect Invest III LLC

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 (19 · 6 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 — Manager identification — I-Management Group LLC vs. Connect Invest Corp.The cover page states the Company is 'externally managed by I-Management Group LLC,' but the body consistently identifies 'Connect Invest Corp.' as the Manager — these are two different legal entities, creating an ambiguity about who actually manages the fund.
• high
  Unfilled placeholder text — December __, 2027Offering expiration date contains an unfilled blank day ('December __, 2027') shipped to investors in both the cover page and the Plan of Distribution.
• 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 — Loan maturity minimum — three months vs. six monthsThe Offering Circular Summary states real estate loan maturities range from three months to three years, but the Standard Terms section states six months to three years.
• medium
  Numeric inconsistency — Management fee — 1/12 of 1% monthly vs. 1.00% per annum calculated quarterlyThe Manager Compensation section states the fee is 'one-twelfth (1/12) of 1%' of outstanding Notes each calendar month, implying a monthly calculation. Note 3 to the financial statements describes the same fee as '1.00% per annum... as of the last day of the calendar quarter or fiscal year' — a different calculation period and basis description.
• medium
  Unfilled placeholder text — May __, 2025Offering Circular cover page date is incomplete — day of month left as a blank placeholder.
• low
  Numeric inconsistency — 2022 Acquisition Loans dollar amount — '$198,086,900,00'The 2022 Acquisition Loans figure in the historical loan table is formatted '$198,086,900,00' — an extra comma renders the number unreadable and inconsistent with the formatting of surrounding figures.
• low
  Spelling / typo — We have has enteredDoubled/garbled verb ('have has') in a material sentence describing the Servicing Agreement.
• low
  Spelling / typo — we have has providedSecond instance of the same doubled/garbled verb ('have has') in a material sentence about loan-modification approval thresholds.
• info
  Spelling / typo — earlies maturity dateMisspelling of 'earliest' as 'earlies' in the redemption plan section describing note priority.
• info
  Spelling / typo — initalMisspelling of 'initial' as 'inital' in substantive text describing the Class A-2 Note rollover election.
• info
  Spelling / typo — Jay CunnighamDirector name misspelled in the officer/director table ('Cunnigham') but spelled correctly ('Cunningham') in the bio paragraph immediately following.

DDQ readiness — 38% covered

5 answered · 0 partial · 8 gaps of 13 standard questions.