Investment Committee Memo · Waterfalls
DeRosa Growth Fund LLC
DeRosa Group · Multifamily RE (distressed/undervalued) · Equity · Vintage 2026
61
Waterfalls composite LP-favorability score (0–100)
91
LP take (absolute)
62
Pref quality
40
Fee drag
32
GP alignment
32
Timing risk
Key economics
- Preferred return
- 8%
- Hurdle rate
- 14%
- LP / GP split
- 80% / 20%
- GP catch-up
- No
- GP clawback
- —
- GP commitment
- —
Diligence findings (8 · 6 high/critical)
- criticalAll Distributions tier 1 over-allocates: shares sum to 200%, not 100%
- criticalAll Distributions tier 2 over-allocates: shares sum to 300%, not 100%
- criticalAll Distributions tier 3 over-allocates: shares sum to 320%, not 100%
- criticalAll Distributions tier 4 over-allocates: shares sum to 320%, not 100%
- 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.
- 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: 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.
DDQ readiness — 69% covered
9 answered · 0 partial · 4 gaps of 13 standard questions.