Investment Committee Memo · Waterfalls
MC Debt Fund 1, LLC
MC Debt Fund Manager, LLC (PassiveInvesting.com) · Mortgage / Real Estate Debt · Debt · Vintage 2018
61
Waterfalls composite LP-favorability score (0–100)
74
LP take (absolute)
58
Pref quality
95
Fee drag
22
GP alignment
32
Timing risk
Key economics
- Preferred return
- 6%
- Hurdle rate
- —
- LP / GP split
- 0% / 100%
- GP catch-up
- No
- GP clawback
- —
- GP commitment
- 0%
Diligence findings (5 · 2 high/critical)
- highDDQ 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.
- highDDQ 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.
- mediumDDQ 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.
- mediumDDQ 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.
- lowDDQ gap: What is the minimum LP investment?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.
DDQ readiness — 54% covered
7 answered · 1 partial · 5 gaps of 13 standard questions.