Hall Structured Finance II, 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
  Spelling / typo — Minimum Purchase Requirements sentenceBroken/garbled sentence in the minimum purchase requirements; 'at least four $20,000' is incomplete and nonsensical (the minimum is $20,000 in $5,000 increments).
• low
  Numeric inconsistency — Ft. Lauderdale Bank Loan maximum amountThe same Ft. Lauderdale loan maximum is shown as '$27,926,00' (missing a digit) in the nine-month notes but '$27,926,000' in the year-end notes.
• info
  Spelling / typo — it's Manager / underwriting principalsTwo errors in one sentence: 'it's Manager' should be possessive 'its Manager', and 'core underwriting principals' should be 'core underwriting principles'.
• info
  Spelling / typo — less from $75 millionGrammatical error in distribution covenant risk factor: 'net equity to be less from $75 million' should read 'less than $75 million'.

DDQ readiness — 38% covered

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