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Elevation Fund 8, LLC

Self-storage facilities and manufactured/mobile home parks· Equity· LLC · 3 classes· ● High· PPM v2· Updated 2mo ago
1 data note
Unusual structure
Run the numbers
Composite
61.2
Waterfalls score
Pref Return
10%
simple
LP Take (Base)
88.5%
at 1.75× exit
GP Commit
0.0%
0% (undisclosed)
Min Investment
$50K
ticket size
Offering Size
$50M
target raise

Analyst unlocks the benchmark overlay — median and vs-bucket delta on each KPI above.

Cascade · Distributions

Where each dollar goes

$875K
LP $737K · Fees $76K · GP $61K
Gross proceeds at exit
$875K
FFees to Manager
$76,250 · 8.7% of gross
taken before the waterfallGP $76K
T1Return of Invested Capital Contributions (Operating Cash Flow) · pro rata with Class A based on Invested Capital Contributions until ROC
$199,688 · 22.8% of gross
uncapped — takes what remainsB $200K
T2Residual split — LP side of 50/50 · Class A & B share 50% pro rata by Membership Interest
$37,441 · 4.3% of gross
uncapped — takes what remainsB $37K
T3Return of Invested Capital (Net Capital Event Proceeds) · pro rata with Class A
$14,041 · 1.6% of gross
uncapped — takes what remainsB $14K
T4Residual split — LP side (Net Capital Event Proceeds); enhanced by early-adopter benefit · Class A/B share base 50% pro rata; early-adopter tranche benefits apply
$2,633 · 0.3% of gross
uncapped — takes what remainsB $3K
T5Refinancing Proceeds — LP side · Class A/B share 70% pro rata by Membership Interest
$898 · 0.1% of gross
uncapped — takes what remainsB $898
Where it lands · of gross proceeds
LP $737K (84.2%)Fees $76K (8.7%)GP $61K (6.9%)
Standard scenario · $500K equity · 5y hold · 1.75× exitRun your own cascade →
Class structure · 3 classes· viewing as Class B

How Elevation Fund 8, LLC divides the cap table

The cascade above is filtered to Class B. Reset to blended view.

PPM Review

7/12 key terms · 3 flags

What this PPM costs, protects, and pays — every claim links to its source page. Missing items read “not stated,” never “no.”

Load at close
~1.0%
of equity, upfront
Recurring drag
~6.50%
per year, pre-split
LP share of next $
~80¢
at 1.75× base case
Key-term findability
7/12
located in the PPM
Needs attention
flagFees taken above the waterfallp.79
flagAffiliate purchases may count toward the minimum — can defeat the escrowp.54
flagDistributions may include a return of capital / offering proceedsp.55
cautionGP commitment not stated
cautionThe sponsor may waive or lower the minimum raisep.54
Offering & eligibilityReg D 506(c) · accredited only
Eligibility
Accredited investors only506(c) permits general solicitation but requires the sponsor to verify your accredited status.
Structure
Reg D 506(c)Sold via broker-dealer
p.49For this Offering, the Manager is relying on an exemption from securities registration under the Federal Securities and Exchange Commission's Regulation D, Rule 506(c).
Where your dollar goes~1.0% load · GP commit n/s
Load at close
~1.0% of your equity is consumed by upfront fees at closing (estimate).
  • Acquisition Fee: 1.0%p.80Up to 1% of the total capitalized acquisition costs incurred by the Company in acquiring such Property
+ 1 other fee(s) not classified by timing
Recurring drag
~6.50% of your equity per year, before any profit split — comparable to an expense ratio.
LP share of next $
~80¢ of each additional dollar reaches the LP at the 1.75× base case.1.3×3.0×
Not stated
GP commitment
Protections & red flags2audited · 1 off-market
Audited financials
Audit committed — no firm named
Independent controls
Auditor Administrator CustodianSee providers →
Off-market (1)
  • Fees taken above the waterfallLP-friendly deals subordinate fees to the prefp.79Equal to the greater of $240,000 or up to 1% of the Real Estate Asset Value
  • GP commitment not statedGPs typically disclose their co-investment
Minimum raise
$1M minimum raise
$50M maximumSubscriptions held in escrow by Prime Trust, LLC (original); replaced by First Republic Bank (segregated account in Company's name) per Supplement No. 4 dated January 17, 2023, with KoreConX Inc. as back-office service providerAffiliate purchases may count toward the minimum — this can defeat the escrow.The sponsor may waive or lower the minimum.If the minimum isn't reached, subscriptions are returned in full.p.54The Offering commenced on August 18, 2020. If the Minimum Dollar Amount has not been raised within 12 months from the date of commencement, the Manager will not Break Impounds and all subscriptions, including any interest earned thereon, will be returned to Investors without deduction.
Cash flow & horizon1monthly distributions · hold n/s
Distribution policy
Targets distributions — MonthlyBegins Distributions will begin to accrue on the first day of the first full month following the Investor's Acceptance as a Member of the Company (Manager anticipated no distributions until Q1 2021 or later)Targeted, at manager's discretionDistributions are a target at the manager’s discretion — not a guarantee.May include a return of capital / offering proceeds — see quote.p.55The Company shall strive to distribute Distributions of Net Operating Cash Flow, if any, on a monthly basis.
Capital stack
2 share classes — your class's priority in the money line depends on the waterfall.
Not stated
Hold / fund life
Governanceno LP removal
Removal & amendments
No LP right to remove the manager
Amendments require an LP supermajority
Key person & life
Extensions: Offering period runs 12 months from commencement of the Offering, subject to two twelve-month extensions at the Manager's sole discretion (the "Termination Date"); the Company's term is otherwise perpetual.
Source
p.83The Manager may not be removed by the Members.
Document quality7/12 findable · 260 pp
Key-term findability
7 of 12 key questions answered.
  • Preferred return
  • Profit split / promote
  • Distribution waterfall
  • Fee schedule
  • GP commitment
  • Audited financials
  • Distribution policy
  • Lock-up / liquidity
  • Fund life / hold
  • Leverage cap
  • Minimum investment
  • Conflicts / related-party
Structural complexity
LP classes: 2Cash pools: 4Max tier depth: 5Conditional branches: 0
More moving parts, not necessarily worse — takes longer to understand.
Document heft
260 pages

Fee-load figures are modeled estimates from extracted terms, not a guarantee. Peer context is shown to Analyst-tier members.

Deal diligence3 findings · worst medium

Automated checks across the fund's extracted PPM. Every finding is shown with the evidence it's based on — proven numbers or a verbatim quote and page.

Waterfall structure

Structural checks run against Elevation Fund 8, LLC's extracted waterfall. Each is a deterministic test — the numbers shown are proven from the PPM, not estimated.

Disposition Fee (1%) is taken above the waterfall

Medium

A 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.

Up to 1% of the sale price of a Property
PPM p.8085% confidence

Diligence gaps

Questions a standard diligence questionnaire would ask that the PPM leaves unanswered.

DDQ gap: Is there a key-person provision?

Medium

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.

90% confidence

DDQ gap: What is the GP's capital commitment (skin in the game)?

Medium

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.

90% confidence

DDQ readiness

How much of a standard institutional due-diligence questionnaire this fund's offering documents answer out of the box. Gaps are questions an allocator will ask directly.

84%
Coverage
16 answered1 partial2 gaps19 questions
Economics
  • What is the preferred return (hurdle) rate offered to LPs?Preferred return of 10%.Answered
  • What is the LP/GP carried-interest split above the preferred return?50% LP / 50% GP residual split.Answered
  • Is there a GP catch-up, and at what rate?No GP catch-up.Answered
  • Does the fund have a GP clawback provision?Yes — GP clawback present.Answered
  • What is the GP's capital commitment (skin in the game)?Gap
Structure
  • What distribution-waterfall structure does the fund use?Waterfall type: Return of Capital then 50/50 split with early-adopter promote subordination.Answered
  • What is the fund's investment strategy / asset class?Equity · Self-storage facilities and manufactured/mobile home parksAnswered
  • What is the fund's vintage year?Vintage 2020.Answered
  • What is the target offering size?Target offering of $50,000,000.Answered
  • What is the minimum LP investment?Minimum investment of $50,000.Answered
  • Are investor subscriptions protected by a minimum-offering escrow?Minimum-offering escrow present, but affiliate purchases may count toward the minimum.Partial
  • Is the securities-offering exemption and investor-eligibility standard disclosed?Offering exemption disclosed (accredited).Answered
Fees & Expenses
  • Is the fund's fee schedule disclosed (management fee, etc.)?6 fee line item(s) extracted from the offering documents.Answered
Governance
  • Does the fund engage an independent auditor?Audited financial statements committed (auditor firm not yet named).Answered
  • Does the fund use a third-party fund administrator?Third-party fund administrator disclosed.Answered
  • Do investors have the right to remove the manager / general partner?The PPM states investors have NO right to remove the manager.Answered
  • Are material amendments to the operating agreement subject to investor consent?Amendments require an investor supermajority.Answered
  • Is there a key-person provision?Gap
Distributions
  • Is the fund's distribution policy disclosed?Distribution policy stated (monthly).Answered

What changed: v1 → v2

Material economic terms that moved between the two most recent PPM versions.

  • Waterfall structureReturn of capital then 50/50 split with Class C subordination to make up pref shortfallReturn of Capital then 50/50 split with early-adopter promote subordination

Fee scheduletaken before LP distributions

Modeled load 15.3% of equity over a 5-yr base case
Fee
Trigger
Basis
Rate
Monthly during operations
Real Estate Asset Value (or Appraised Property Value if available); minimum $240,000/year
1.00%
Upon acquisition of a Property
Total capitalized acquisition costs
1.00%
Recurring monthly during operations
Gross revenues of each Property
5.00%
Per construction project
Amount expended for new construction projects
5.00%
Upon sale of a Property
Sale price of a Property
1.00%
Organizational & Offering Expenses (incl. Selling Commissions)
At offering
Gross Proceeds
5.00%

Service providers2 gaps

Legal Counsel
OK
Kaplan Voekler Cunningham & Frank PLC
the Manager has retained Kaplan Voekler Cunningham & Frank PLC as its corporate securities counsel
Auditor
Gap
Not disclosed
Audit intent not stated in PPM. Ask the sponsor: will the fund be audited, by whom, and on what frequency?
Fund Administrator
Gap
Not disclosed
No third-party fund administrator referenced. Manager likely handles admin internally — common for <$10M raises but reduces independence.
Placement Agent
OK
No placement agent engaged
No placement agent engaged. Direct placement by Manager — no placement fees eat your invested capital.

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