ILS Fixed Horizon LLC

Cascade · Distributions

Where each dollar goes

$875K

LP $850K · Fees $25K · GP $0

Standard scenario · $500K equity · 5y hold · 1.75× exitRun your own cascade →

Class structure · 6 classes· viewing as Class C2 Non-Voting Debt Units

How ILS Fixed Horizon LLC divides the cap table

The cascade above is filtered to Class C2 Non-Voting Debt Units. Reset to blended view.

Class A1 Non-Voting Debt Units
membership interest
Min · $25K
“Class A1 Units are paid five (5%) percent per annum. Class A1 Units are available to Debt Investors who make a minimum Capital Contribution of twenty-five thousand ($25,000) dollars.”— PPM p. 16
Class A2 Non-Voting Debt Units
membership interest
Min · $500K
“Class A2 Units are paid six (6%) percent per annum. Class A2 Units are available to Debt Investors who make a minimum Capital Contribution of five hundred thousand ($500,000) dollars.”— PPM p. 16
Class B1 Non-Voting Debt Units
membership interest
Min · $25K
“Class B1 Units are paid six (6%) percent per annum. Class B1 Units are available to Debt Investors who make a minimum Capital Contribution of twenty-five thousand ($25,000) dollars.”— PPM p. 16
Class B2 Non-Voting Debt Units
membership interest
Min · $500K
“Class B2 Units are paid seven (7%) percent per annum. Class B2 Units are available to Debt Investors who make a minimum Capital Contribution of five hundred thousand ($500,000) dollars.”— PPM p. 16
Class C1 Non-Voting Debt Units
membership interest
Min · $25K
“Class C1 Units are paid seven (7%) percent per annum. Class C1 Units are available to Debt Investors who make a minimum Capital Contribution of twenty-five thousand ($25,000) dollars.”— PPM p. 17
Class C2 Non-Voting Debt Units● active
membership interest
Min · $500K
“Class C2 Units are paid eight (8%) percent per annum. Class C2 Units are available to Debt Investors who make a minimum Capital Contribution of five hundred thousand ($500,000) dollars.”— PPM p. 17

Deal diligence15 findings · worst high

Automated checks across the fund's extracted PPM. Every finding is shown with the evidence it's based on — proven numbers or a verbatim quote and page.

Document quality

Drafting defects found in the PPM prose — numeric inconsistencies, broken cross-references, unfilled placeholders, and defined-term problems. Each is shown with the offending quote and its page.

Numeric inconsistency — Net Proceeds to Company at 100% sold

High

Use-of-Proceeds 100%-sold table states net proceeds to Company of $70,445,000 (93.918%) but footnote (4) on the same page allocates 94.918% ($71,189,000) of net proceeds to purchasing notes, contradicting both the dollar figure and the percentage.

“Net Proceeds to Company from Offering (4) N/A N/A $70,445,000 93.918% ... 4) Assuming the Maximum Offering Amount is achieved, the Company expects to allocate (a) 94.918% ($71,189,000.00) of the Net Proceeds to the Company to purchase notes”

PPM p.3586% confidence

Document-quality defect — Liquidation Distributions priority list

Medium

The liquidation-priority list under Liquidation Rights is mis-numbered: it runs items 1-5 ('First','Second','Third','Interest Payments...','Fourth') but represents only four priority tiers, with item 3's sentence broken across items 3 and 4, creating ambiguity in the distribution waterfall.

“3. Third, to the holders of Debt Units to the extent of and in proportion to their respective unpaid 4. Interest Payments until such Debt Unit holder's unpaid Interest Payment has been paid in full; and 5. Fourth, to the Manager.”

PPM p.1970% confidence

Unfilled placeholder text — (confirm with client)

Medium

An internal drafting note instructing the preparer to verify legal-proceedings disclosure was left in the investor-facing document.

“(d) Legal proceedings. (confirm with client)”

PPM p.4690% confidence

Broken cross-reference — Exhibit B

Low

The Subscription Agreement is referenced as 'attached hereto as Exhibit B,' but it is identified as Exhibit 1A-4 on the cover-page disclosures and in the Index to Exhibits, which uses a 1A-X numbering scheme with no 'Exhibit B.'

“you will be deemed to (i) agree to all of the provisions of the Subscription Agreement attached hereto as Exhibit B”

PPM p.3372% confidence

Spelling / typo — FINACNIAL

Info

Table of Contents heading misspells 'FINANCIAL' as 'FINACNIAL'.

“MANAGEMENT’S ANALYSIS OF FINACNIAL CONDITION AND RESULTS OF OPERATIONS”

PPM p.795% confidence

Spelling / typo — our activities i be restricted

Info

Broken sentence with a missing/garbled word ('i') in a substantive regulatory risk statement.

“the Company may be required to institute burdensome compliance requirements and our activities i be restricted, which would affect the Company’s operations to a material degree.”

PPM p.1285% confidence

Spelling / typo — SUBSRIPTION

Info

Index to Exhibits misspells 'SUBSCRIPTION' as 'SUBSRIPTION' in the description of Exhibit 1A-4.

“ILS FIXED HORIZON LLC AMENDED SUBSRIPTION AGREEMENT”

PPM p.6595% confidence

Spelling / typo — the Manager the additional financial information

Info

Broken sentence missing a verb ('the Manager [provides/discloses] the additional financial information') in the prior-performance disclosure.

“Additionally, the Manager the additional financial information as outlined in the SEC’s Industry Guide 5, in table format, per requested guidelines as an Exhibit to this Offering.”

PPM p.4082% confidence

Diligence gaps

Questions a standard diligence questionnaire would ask that the PPM leaves unanswered.

DDQ gap: Does the fund engage an independent auditor?

High

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.

90% confidence

DDQ gap: Does the fund have a GP clawback provision?

High

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.

90% confidence

DDQ gap: What is the LP/GP carried-interest split above the preferred return?

High

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.

90% confidence

DDQ gap: What is the preferred return (hurdle) rate offered to LPs?

High

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.

90% confidence

DDQ gap: Does the fund use a third-party fund administrator?

Medium

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.

90% confidence

DDQ gap: Is there a GP catch-up, and at what rate?

Medium

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.

90% confidence

DDQ gap: What is the GP's capital commitment (skin in the game)?

Medium

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.

90% confidence

DDQ readiness

How much of a standard institutional due-diligence questionnaire this fund's offering documents answer out of the box. Gaps are questions an allocator will ask directly.

38%

Coverage

5 answered1 partial7 gaps13 questions

Economics

What is the preferred return (hurdle) rate offered to LPs?Gap
What is the LP/GP carried-interest split above the preferred return?Gap
Is there a GP catch-up, and at what rate?Gap
Does the fund have a GP clawback provision?Gap
What is the GP's capital commitment (skin in the game)?Gap

Structure

What distribution-waterfall structure does the fund use?4 distribution tier(s) extracted; structure type not classified.Partial
What is the fund's investment strategy / asset class?UnknownAnswered
What is the fund's vintage year?Vintage 2015.Answered
What is the target offering size?Target offering of $75,000,000.Answered
What is the minimum LP investment?Minimum investment of $25,000.Answered

Fees & Expenses

Is the fund's fee schedule disclosed (management fee, etc.)?3 fee line item(s) extracted from the offering documents.Answered

Governance

Does the fund engage an independent auditor?Gap
Does the fund use a third-party fund administrator?Gap

Generate IC memo →

Fee scheduletaken before LP distributions

Total load 1.00%

Fee

Trigger

Basis

Rate

Management Fee

Ongoing during the offering

1% per annum on total Capital Contributions made to the Company, paid monthly

1.00%

Note Transfer Fee

Each note purchase / transfer

Flat fee of $135 to $200 per note transferred from ILS Lending LLC / Pearl Funding LLC via Loan Source LLC to the Company

0.00%

Organization and Offering Expenses Reimbursement

Post-qualification from working capital reserves at Manager's discretion

Actual expenses estimated at approximately $61,000 (legal and administrative), reimbursed to Manager from working capital reserves

0.00%

Service providers3 gaps

Provider network →

Legal Counsel

Gap

Not disclosed

No independent counsel named for investors. Common in small syndications where Manager and Fund share counsel — reduces independence. Verify during diligence.

Auditor

Gap

Not disclosed

Audit intent not stated in PPM. Ask the sponsor: will the fund be audited, by whom, and on what frequency?

Fund Administrator

Gap

Not disclosed

No third-party fund administrator referenced. Manager likely handles admin internally — common for <$10M raises but reduces independence.

Placement Agent

No placement agent engaged

No placement agent engaged. Direct placement by Manager — no placement fees eat your invested capital.

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Waterfalls Composite Score

61.8.

LP-favorability score · 5 weighted dimensions

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Compare to bucket →

Score breakdown5 dimensions

Absolute LP Takeⓘunscored—

GP Timing Riskⓘ68

Pref Qualityⓘ62

Fee Dragⓘ75

Alignmentⓘ42

LP take × exit multiple

at 5y hold · 97% at 1.75×

LP take Fee drag· sim at $500k equity

Exit	LP IRR	LP MoC	LP Take	Fees
1.00×	-1.0%	0.95×	95.0%	5.0%
1.50×	7.7%	1.45×	96.7%	3.3%
1.75×	11.2%	1.70×	97.1%	2.9%
2.00×	14.3%	1.95×	97.5%	2.5%
2.50×	19.6%	2.45×	98.0%	2.0%
3.00×	24.2%	2.95×	98.3%	1.7%

Jump to an exit

1.0× downside 1.5× base 2.0× upside 3.0× home run

ILS Fixed Horizon LLC

Class A1 Non-Voting Debt Units

Class A2 Non-Voting Debt Units

Class B1 Non-Voting Debt Units

Class B2 Non-Voting Debt Units

Class C1 Non-Voting Debt Units

Class C2 Non-Voting Debt Units● active

Document quality

Numeric inconsistency — Net Proceeds to Company at 100% sold

Document-quality defect — Liquidation Distributions priority list

Unfilled placeholder text — (confirm with client)

Broken cross-reference — Exhibit B

Spelling / typo — FINACNIAL

Spelling / typo — our activities i be restricted

Spelling / typo — SUBSRIPTION

Spelling / typo — the Manager the additional financial information

Diligence gaps

DDQ gap: Does the fund engage an independent auditor?

DDQ gap: Does the fund have a GP clawback provision?

DDQ gap: What is the LP/GP carried-interest split above the preferred return?

DDQ gap: What is the preferred return (hurdle) rate offered to LPs?

DDQ gap: Does the fund use a third-party fund administrator?

DDQ gap: Is there a GP catch-up, and at what rate?

DDQ gap: What is the GP's capital commitment (skin in the game)?

DDQ readiness

Fee scheduletaken before LP distributions

Community threads0 active

Reviews