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MHC America Fund, LLC

Sponsored by MHC America, LLC·

Mobile Home Parks· Equity· LLC · 3 classes· ● High· PPM v1· Updated 27d ago
1 data note
Unusual structure
Run the numbers
Composite
64.1
median 49 +15
Pref Return
8%
median 8.0% +0.0%
LP Take (Base)
86.9%
median 79.8% +7.0%
GP Commit
0.0%
median 0.0% +0.0%
Min Investment
$50K
ticket size
Offering Size
$100M
target raise
Cascade · Distributions

Where each dollar goes

$875K
LP $743K · Fees $55K · GP $78K
GROSS PROCEEDS$875KGPFFees to Manager$55,000 · 6.3% of grossCT250% Residual to Class C / Ma…$77,500 · 8.9% of grossresidual $743K
Standard scenario · $500K equity · 5y hold · 1.75× exitRun your own cascade →
Class structure · 3 classes· viewing as Class C

How MHC America Fund, LLC divides the cap table

The cascade above is filtered to Class C. Reset to blended view.

Deal diligence7 findings · worst critical

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.

Waterfall structure

Structural checks run against MHC America Fund, LLC's extracted waterfall. Each is a deterministic test — the numbers shown are proven from the PPM, not estimated.

All Distributions tier 2 over-allocates: shares sum to 150%, not 100%

Critical
thereafter, 50% to the Class A and Class B Members, as a group, pro rata based upon each Member's relative Membership Interest, and 50% to the Class C Member.
PPM p.3295% confidence

All Distributions tier 5 over-allocates: shares sum to 150%, not 100%

Critical
thereafter, 50% to the Class A and Class B Members, as a group, pro rata based upon each Member's relative Membership Interest, and 50% to the Class C Member.
PPM p.3395% confidence

Disposition Fee (1%) is taken above the waterfall

Medium

A performance- or transaction-linked fee paid above the waterfall reaches the GP before the LP's distribution priorities run, eroding the pool the pref + return-of-capital draw from. Routine asset-management fees above the line are normal; a disposition/promote-flavored fee there is a leak worth pricing.

Up to 1% of the sale price of a Property
PPM p.3685% 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: 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: 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.

69%
Coverage
9 answered0 partial4 gaps13 questions
Economics
  • What is the preferred return (hurdle) rate offered to LPs?Preferred return of 8%.Answered
  • What is the LP/GP carried-interest split above the preferred return?50% LP / 50% GP residual split.Answered
  • Is there a GP catch-up, and at what rate?No GP catch-up.Answered
  • 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?Waterfall type: Preferred Return then 50/50 split.Answered
  • What is the fund's investment strategy / asset class?Equity · Mobile Home ParksAnswered
  • What is the fund's vintage year?Vintage 2016.Answered
  • What is the target offering size?Target offering of $100,000,000.Answered
  • What is the minimum LP investment?Minimum investment of $50,000.Answered
Fees & Expenses
  • Is the fund's fee schedule disclosed (management fee, etc.)?9 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

Fee scheduletaken before LP distributions

Total load 10.75%
Fee
Trigger
Basis
Rate
Annual/Monthly during Property operations
Real Estate Asset Value or Appraised Property Value (greater of)
1.00%
Upon acquisition of a Property
Total capitalized acquisition costs
1.00%
Loan Guarantee Fee (Recourse)
At time of purchase money or refinance loan
Loan amount
2.50%
Limited Recourse Guarantee Fee
At time of non-recourse loan
Loan amount
0.75%
Recurring, monthly during Property Operations
Commensurate with local market rates
0.00%
Upon sale of a Property
Sale price of Property
1.00%
FundAmerica Fees
As Capital Contributions are received
Gross Proceeds
0.50%
Placement Fee
As Capital Contributions are received
Gross Proceeds
2.50%
Organizational and Offering Expenses
At offering
Gross Proceeds
1.50%

Service providers2 gaps

Legal Counsel
OK
Lowndes, Drosdick, Doster, Kantor & Reed, P.A.
The Offering documents ... have been prepared by counsel for the Manager, Lowndes, Drosdick, Doster, Kantor & Reed, P.A., Orlando, Florida
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
OK
No placement agent engaged
No placement agent engaged. Direct placement by Manager — no placement fees eat your invested capital.

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