Elevation Vero Beach SA, LLC

Key economics

Preferred return

8%

Hurdle rate

—

LP / GP split

50% / 25%

GP catch-up

No

GP clawback

No

GP commitment

—

Diligence findings (9 · 4 high/critical)

• critical
  All Distributions tier 2 over-allocates: shares sum to 200%, not 100%
• critical
  All Distributions tier 5 over-allocates: shares sum to 200%, not 100%
• 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
  Residual split allocates 75%, not 100% (LP 50% + GP 25%)
• 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 key-person provision?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: 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
  Disposition Fee (1%) 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.
• low
  No clawback provision — promote paid is not trued-up to the LP at wind-downThe fund pays the GP carried interest but has no clawback. If interim distributions over-pay promote relative to lifetime results, the LP cannot recover the difference. Common in real-estate funds, but worth confirming against the distribution timing.

DDQ readiness — 79% covered

15 answered · 0 partial · 4 gaps of 19 standard questions.