MCI Income Fund V, LLC

Cascade · Distributions

Where each dollar goes

$875K

LP $875K · Fees $0 · GP $0

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

Class structure · 2 classes· viewing as Class A Bonds

How MCI Income Fund V, LLC divides the cap table

The cascade above is filtered to Class A Bonds. Reset to blended view.

Class A Bonds● active
debt / senior secured bond
Min · $10K
“7.00% Senior Secured Bonds (Class A Bonds)”— PPM p. 1
Class B Bonds
debt / senior secured bond
Min · $10K
“7.50% Senior Secured Bonds (Class B Bonds)”— PPM p. 1

Deal diligence14 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.

Document-quality defect — Identity of the Company's member (Megatel Capital Investments, LLC vs. MCI Holdings, LLC)

High

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.

“The common member of the Company is MCI Holdings, LLC. The common member of the Company is responsible for all management and decisions of the Company.”

PPM p.7082% confidence

Numeric inconsistency — Interest payment frequency (quarterly vs. monthly)

High

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.

“payable to the record holders of the Bonds quarterly in arrears on January 25th, April 25th, July 25th and October 25th of each year ... [vs] Commencing on the 15 th day of the month, or the next business day, if the 15 th is a weekend or a holiday, following the issuance of such Bond and continuing monthly until its maturity date.”

PPM p.190% confidence

Document-quality defect — Offering termination/extension terms (June 30, 2022 + two six-month periods vs. second anniversary + one additional year)

Medium

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.

“terminate the offering on June 30, 2022 ... our Manager has the right to extend this offering beyond June 30, 2022 for two consecutive six-month periods. ... [vs] (ii) the second anniversary of the date of qualification of this offering statement ... we have the right to extend this offering beyond the second anniversary of the date of qualification for an additional year.”

PPM p.280% confidence

Numeric inconsistency — 365-day year consisting of twelve 30-day months

Medium

The 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.

“Interest will accrue and be paid on the basis of a 365-day year consisting of twelve 30-day months.”

PPM p.5785% confidence

Numeric inconsistency — Closing dates (first and third Thursday vs. the 20th of each month)

Medium

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.

“Our company will conduct closings in this offering on the first and third Thursday of each month or the 'closing dates,' ... [vs] We will conduct closings on the 20th of each month or, if the 20th is not a business day, the next succeeding business day”

PPM p.588% confidence

Spelling / typo — The Word Health Organization

Info

Financial-statement note misspells 'World Health Organization' as 'The Word Health Organization' in substantive disclosure text.

“The Word Health Organization has declared COVID-19 to constitute a 'Public Health Emergency of International Concern' and characterized COVID-19 as a pandemic.”

PPM p.7095% 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 distribution-waterfall structure does the fund use?

Medium

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.

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 answered0 partial8 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?Gap
What is the fund's investment strategy / asset class?UnknownAnswered
What is the fund's vintage year?Vintage 2021.Answered
What is the target offering size?Target offering of $50,000,000.Answered
What is the minimum LP investment?Minimum investment of $10,000.Answered

Fees & Expenses

Is the fund's fee schedule disclosed (management fee, etc.)?6 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 11.00%

Fee

Trigger

Basis

Rate

Selling Commission

Bond sale closing

6.00% of gross offering proceeds on sale of Class A Bonds only; no selling commissions on Class B Bonds

6.00%

Managing Broker-Dealer Fee

Bond sale closing

Up to 0.50% of gross offering proceeds; applies to both Class A and Class B Bonds

0.50%

Wholesaling Fee

Bond sale closing (at manager discretion)

Up to 1.50% of gross offering proceeds from certain sales of the Bonds

1.50%

Nonaccountable Expense Reimbursement

Bond sale closing

Up to 1.00% of gross offering proceeds on the sale of Class A Bonds; may also apply to Class B Bond sales

1.00%

Organization and Offering Fee (O&O Fee)

Offering proceeds raised

2.00% of gross offering proceeds; Manager pays actual O&O expenses from this fee and retains any excess as compensation

2.00%

Accountable Expense Reimbursement

Ongoing operations

Reimbursement of documented expenses incurred by Manager and affiliates on behalf of the Company; paid monthly; amount indeterminable

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

58.3.

LP-favorability score · 5 weighted dimensions

Benchmark · Other Alternatives

Other / Specialty

See where this fund sits across 25 indexed other / specialty funds — median pref, hurdle, splits, GP commit.

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Score breakdown5 dimensions

Absolute LP Takeⓘunscored—

GP Timing Riskⓘ55

Pref Qualityⓘunscored—

Fee Dragⓘ100

Alignmentⓘ20

LP take × exit multiple

at 5y hold · 100% at 1.75×

LP take Fee drag· sim at $500k equity

Exit	LP IRR	LP MoC	LP Take	Fees
1.00×	0.0%	1.00×	100.0%	0.0%
1.50×	8.4%	1.50×	100.0%	0.0%
1.75×	11.8%	1.75×	100.0%	0.0%
2.00×	14.9%	2.00×	100.0%	0.0%
2.50×	20.1%	2.50×	100.0%	0.0%
3.00×	24.6%	3.00×	100.0%	0.0%

Jump to an exit

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MCI Income Fund V, LLC

Class A Bonds● active

Class B Bonds

Document quality

Document-quality defect — Identity of the Company's member (Megatel Capital Investments, LLC vs. MCI Holdings, LLC)

Numeric inconsistency — Interest payment frequency (quarterly vs. monthly)

Document-quality defect — Offering termination/extension terms (June 30, 2022 + two six-month periods vs. second anniversary + one additional year)

Numeric inconsistency — 365-day year consisting of twelve 30-day months

Numeric inconsistency — Closing dates (first and third Thursday vs. the 20th of each month)

Spelling / typo — The Word Health Organization

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 distribution-waterfall structure does the fund use?

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

DDQ readiness

Fee scheduletaken before LP distributions

Community threads0 active

Reviews