Investment Committee Memo · Waterfalls
Golden Garages, LLC
Nectar Garages Manager, LLC (Ben Lapidus & Gerrit Van Maanen) · Garage / Self-Storage (condo) · Equity · Vintage 2018
69
Waterfalls composite LP-favorability score (0–100)
88
LP take (absolute)
92
Pref quality
0
Fee drag
62
GP alignment
68
Timing risk
Key economics
- Preferred return
- 10%
- Hurdle rate
- 20%
- LP / GP split
- 65% / 35%
- GP catch-up
- No
- GP clawback
- —
- GP commitment
- 3.33%
Diligence findings (5 · 3 high/critical)
- criticalShared (before class split) tier 2 over-allocates: shares sum to 200%, 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.
- mediumDisposition Fee (4.5%) 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.
DDQ readiness — 69% covered
9 answered · 1 partial · 3 gaps of 13 standard questions.