Groundfloor Yield LLC

Key economics

Preferred return

—

Hurdle rate

—

LP / GP split

—

GP catch-up

—

GP clawback

—

GP commitment

—

Diligence findings (15 · 5 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.
• high
  Numeric inconsistency — Stairs Notes short-term notes payable outstanding as of December 31, 2022Within Groundfloor Yield's own audited financials, the notes-payable footnote states $42,325,580 outstanding at 12/31/2022, but the audited Balance Sheet and the matching footnote both report $44,325,580 for the same line item.
• 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 — Number of Stairs Notes issued during year ended December 31, 2023The MD&A says 707 Stairs Notes were issued in FY2023, but the audited financial-statement notes state 733 notes were entered into for the same period.
• medium
  Unfilled placeholder text — date of preliminary Offering CircularThe Offering Circular date line was shipped blank ('is .') rather than completed.
• low
  Broken cross-reference — Risk Factors page referenceThe Offering Circular Summary points to Risk Factors 'beginning on page 10,' but the cover page and Table of Contents both place Risk Factors on page 11.
• low
  Defined-term defect — 2023 Subordinated Convertible Notes vs. 2023 Mezzanine Subordinated Convertible NotesThe MD&A defines the mezzanine instrument as 'the 2023 Subordinated Convertible Notes' — the identical defined term already assigned to a different, separately described instrument — then immediately calls it the '2023 Mezzanine Subordinated Convertible Notes,' creating ambiguity about which notes are meant.
• low
  Document-quality defect — Carrying Amount at June 30, 2023 (loan portfolio vintage table)A loan-portfolio table whose header is expressly 'as of June 30, 2024 and December 31, 2023' labels its carrying-amount subtotal 'Carrying Amount at June 30, 2023,' mis-dating the 6/30/2024 column.
• low
  Document-quality defect — Six months ended June 30, 2024 and June 30, 2024The MD&A comparative-period heading repeats '2024' twice; the comparison period should be the six months ended June 30, 2023.

DDQ readiness — 38% covered

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