Cornerstone Institutional Growth REIT, 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 (14 · 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
  Unfilled placeholder text — [to come]Section 7.1 lists the directors who shall serve until the next annual meeting, but only one name is filled in; the remaining four director slots are unfilled '[to come]' placeholder tokens, meaning the board roster shipped incomplete.
• 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 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
  DDQ gap: What is the target offering size?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
  Defined-term defect — Conflicts CommitteeSection 10.1(b) repeatedly grants powers to 'the Conflicts Committee', a term never defined anywhere in the charter; the body established and used throughout (including in Section 10.1(a) immediately above) is the 'Independent Directors Committee', creating ambiguity about which committee may create subcommittees and delegate powers.
• medium
  Disposition Fee (3%) is taken above the waterfallA performance- or transaction-linked fee paid above the waterfall reaches the GP before the LP's distribution priorities run, eroding the pool the pref + return-of-capital draw from. Routine asset-management fees above the line are normal; a disposition/promote-flavored fee there is a leak worth pricing.
• medium
  Unfilled placeholder text — Registration Statement (No. 333- )Section 5.8(c) leaves the Form S-11 registration statement number blank ('No. 333- '), an unfilled template field; the very same reference is fully populated as 'No. 333-126087' in the certificate legend on page 14, confirming the page-6 blank was never completed.
• 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.
• info
  Spelling / typo — no limit the numberBroken sentence in Section 5.11: 'there is no limit the number of successive one-year postponements' is missing a word (should read 'no limit to/on the number').

DDQ readiness — 23% covered

3 answered · 1 partial · 9 gaps of 13 standard questions.