Joyner Capital LP

Key economics

Preferred return

8%

Hurdle rate

—

LP / GP split

80% / 20%

GP catch-up

Yes

GP clawback

—

GP commitment

—

Diligence findings (7 · 2 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.
• 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: 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
  DDQ gap: What is the target offering size?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
  Full (100%) GP catch-up to a 20% carryA 100%-rate catch-up routes every post-pref dollar to the GP until it has caught up to its full carry, before the LP sees any split. Combined with a high carry this materially front-loads GP economics. A graduated (e.g. 50/50) catch-up would keep the LP in the cash flow during the tier.
• medium
  GP earns a promote but no tier returns LP capital firstThe waterfall pays the GP a promote/carry, yet none of the extracted tiers return the LP's contributed capital before that promote runs. Either the PPM omits a return-of-capital step or the extractor missed it — either way the distribution section is worth a read.

DDQ readiness — 54% covered

7 answered · 1 partial · 5 gaps of 13 standard questions.