LEGACYHUB HOSPITALITY FUND I INC

Key economics

Preferred return

—

Hurdle rate

—

LP / GP split

—

GP catch-up

—

GP clawback

—

GP commitment

—

Diligence findings (14 · 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 — Proceeds to the Company at Minimum OfferingThe cover fee table states 'Proceeds to the Company' of only $100,000.00 against a $1,000,000.00 Minimum Dollar Amount with zero commissions, an internally impossible figure that also contradicts the Use of Proceeds table (page 33) showing $950,000 net for the same $1,000,000 minimum.
• 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 — NAV re-pricing frequency (semi-annual vs. quarterly)The pricing description says the per-share price will be adjusted 'semi-annually' yet then lists four re-pricing dates (January 1st, April 1st, July 1st and October 1st), which is a quarterly schedule and contradicts the 'every fiscal quarter' language used on the cover and in the Q&A.
• medium
  Numeric inconsistency — Redemption request lead time (60 days vs. 30 days)The Summary of Redemption Plan table requires submitting an Introductory-Period redemption request 'At least 60 days before the effective redemption date' and a 'minimum 60 day waiting period', contradicting the body text that sets the lead time at thirty (30) days.
• low
  Broken cross-reference — Subscription Agreement exhibit labelThe subscription agreement is pointed to under three different labels across the document - 'Appendix B' (pages 13 and 28), 'Exhibit III' (this page), and item '4.1 Subscription Agreement' in the Part III exhibit index - so no single pointer reliably resolves.
• low
  Defined-term defect — Manager vs. Investment ManagerLegacyHub Partners, LLC is defined as 'the Manager' throughout the body, but the audited financial-statement notes redefine the same entity as 'the Investment Manager', using the new term for fee and economic-dependency disclosures without reconciling it to the body's defined term.
• low
  Document-quality defect — Multifamily / residential asset-class languageIn a fund whose entire strategy is hospitality (hotel) real estate, the Use of Proceeds boilerplate references investing 'for the purchase of Multifamily real estate', an uncorrected wrong-asset-class template leftover (the same section also markets 'our residential spaces').

DDQ readiness — 38% covered

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