Groundfloor Loans 1, 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 · 4 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.
• 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.
• medium
  Numeric inconsistency — Sponsor real estate loan track recordThe Sponsor's real estate/accounting team track record 'Through July 31, 2023' is stated as 'more than 4,700 commercial real estate loans' on page 81 but 'more than 2,500 commercial real estate loans' on page 101 — the same metric (same team, same date, same '$1 billion' total) is given two conflicting loan counts.
• low
  Numeric inconsistency — Company telephone numberThe Company's telephone number is given as '(404) 850-9225' on the cover/notice pages (pages 3 and 14) but as '(404) 850-9223' in the prospectus summary on page 7 — the last digit disagrees.
• info
  Spelling / typo — JanauryThe word 'January' is misspelled 'Janaury' in the Employees disclosure stating the Sponsor's headcount.
• info
  Spelling / typo — Mary 2014 until Mary 2015In Patrick Donoghue's management bio the month 'May' is misspelled 'Mary' twice ('from Mary 2014 until Mary 2015'); the same error is repeated verbatim where the bio is duplicated on page 107.

DDQ readiness — 38% covered

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