CORNERSTONE REALTY FUND 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 (12 · 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
  Numeric inconsistency — Initial / Acceptance FeeExhibit A (General Provisions) states the initial non-refundable set-up fee is $1,500.00, but Exhibit B (Schedule of Fees) lists the Acceptance Fee (Non-Refundable) as $1,000.00 — a $500 discrepancy.
• high
  Unfilled placeholder text — __________, 2003 / ___________, 2004Three date blanks left unfilled in the executed agreement: the agreement effective date, the Prospectus date, and the Minimum Offering Termination Date are all blank placeholders.
• 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.
• low
  Spelling / typo — (iii) missing in investment listSection 5 enumerates investment options as (i), (ii), then '(iii) or (iv)' — item (iii) is missing and the text jumps nonsensically to a combined '(iii) or (iv)', indicating a deleted clause was not renumbered.
• low
  Spelling / typo — costs end expensesTypographical error: 'end' used where 'and' is clearly intended in the CANCELLATION clause.

DDQ readiness — 38% covered

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