MCI Income Fund V, 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 (14 · 6 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
  Document-quality defect — Identity of the Company's member (Megatel Capital Investments, LLC vs. MCI Holdings, LLC)The offering circular body identifies the Manager/sole member as Megatel Capital Investments, LLC holding a 100% membership interest, but the audited financial-statement notes state the common (sole) member is MCI Holdings, LLC — a contradiction about who owns and controls the Company.
• high
  Numeric inconsistency — Interest payment frequency (quarterly vs. monthly)The cover and Description of Bonds state interest is paid quarterly in arrears (Jan/Apr/Jul/Oct 25th), but the Summary 'Interest Payments' section says interest is paid monthly until maturity — directly conflicting payment frequencies for the same Bonds.
• 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
  Document-quality defect — Offering termination/extension terms (June 30, 2022 + two six-month periods vs. second anniversary + one additional year)The cover states the offering terminates on June 30, 2022 with a right to extend for two consecutive six-month periods, while the Summary states it terminates on the second anniversary of qualification with a right to extend for one additional year — inconsistent termination and extension mechanics.
• medium
  Numeric inconsistency — 365-day year consisting of twelve 30-day monthsThe Description of Bonds day-count basis is internally contradictory: a 365-day year cannot consist of twelve 30-day months (twelve 30-day months equals 360 days), so the stated interest-accrual convention is impossible.
• medium
  Numeric inconsistency — Closing dates (first and third Thursday vs. the 20th of each month)The Summary and How-to-Invest sections say closings occur on the first and third Thursday of each month, while the Plan of Distribution says closings occur on the 20th of each month — conflicting closing-date mechanics.
• info
  Spelling / typo — The Word Health OrganizationFinancial-statement note misspells 'World Health Organization' as 'The Word Health Organization' in substantive disclosure text.

DDQ readiness — 38% covered

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