DDQ gap: Does the fund engage an independent auditor?
HighThe 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
Cascade · Distributions
Where each dollar goes
$875K
LP $668K · Fees $208K · GP $0
Gross proceeds at exit
$875K
FFees to Manager
$207,500 · 23.7% of gross
taken before the waterfall→ GP $208K
T1Return of Capital
$500,000 · 57.1% of gross
uncapped — takes what remains→ LP $500K
T2Preferred Return (8%)
$167,500 · 19.1% of gross
uncapped — takes what remains→ LP $168K
Where it lands · of gross proceeds
LP $668K (76.3%)Fees $208K (23.7%)GP $0 (0.0%)
Standard scenario · $500K equity · 5y hold · 1.75× exitRun your own cascade →
Class structure · 3 classes
How MHPI IV, LLC divides the cap table
The cascade above models the blended LP view. Click a class below to view per-class economics.
Class A
Manager“Elevation IV A, LLC, a Florida limited liability company, will hold one hundred percent (100%) of the Company's Class A Interests”— PPM p. 8
Class B
LPMin · $250K“Each investor in Class B Interests... must invest at least Two Hundred Fifty Thousand ($250,000) in the Class B Interests”— PPM p. 8
Class C
LPMin · $50K“Each investor in Class C Interests... must invest at least Fifty Thousand ($50,000) Dollars in the Class C Interests”— PPM p. 8
PPM Review
7/12 key terms · 2 flagsWhat this PPM costs, protects, and pays — every claim links to its source page. Missing items read “not stated,” never “no.”
Load at close
~6.5%
of equity, upfront
Recurring drag
~7.00%
per year, pre-split
LP share of next $
~100¢
at 1.75× base case
Key-term findability
7/12
located in the PPM
Needs attention
flagNo GP clawback
flagFees taken above the waterfallp.11
Offering & eligibilityReg D 506(b) · accredited only▶
Eligibility
Accredited investors onlyA 506(b) offering may not be publicly advertised — being cold-marketed one is a red flag.
Structure
Reg D 506(b)Sold via broker-dealer — 8.0% selling commission
p.13“The interests described herein are not being registered under the Securities Act of 1933, as amended (the "Securities Act"), and must be acquired for investment purposes only and not with a view to the distribution thereof. Offers of partnership interests will be made only to "accredited investors" within the meaning of Regulation D under the Securities Act.”Where your dollar goes~6.5% load · 0.0% GP commit▶
Load at close
~6.5% of your equity is consumed by upfront fees at closing (estimate).
- Acquisition Fee: 4.0%p.11“At the closing of each property acquired by the Company, the Company will pay the Class A Member a fee in the total amount of four percent (4.00%) of the purchase price of said property.”
- Guaranty Fee: 2.5%p.9“such Member or its Affiliate shall be entitled to a one-time fee equal to two and five tenths percent (2.5%) of the total amount of the obligations of the Company guaranteed”
Recurring drag
~7.00% of your equity per year, before any profit split — comparable to an expense ratio.
LP share of next $
~100¢ of each additional dollar reaches the LP at the 1.75× base case.Roughly flat across the whole 1.3–3.0× sweep — no promote drag detected.
Protections & red flags2audit n/s · 2 off-market▶
Independent controls
Off-market (2)
- No GP clawbackA clawback is the market norm
- Fees taken above the waterfallLP-friendly deals subordinate fees to the prefp.11“At the closing of each property acquired by the Company, the Company will pay the Class A Member a fee in the total amount of four percent (4.00%) of the purchase price of said property.”
Minimum raise
$250K minimum raise
$5M maximumSubscriptions held in escrow by U.S. BankIf the minimum isn't reached, subscriptions are returned in full.p.9“If the initial closing is not held by the Termination Date all subscription proceeds will be returned to the subscribers without interest or deduction and the Offering will terminate. Pending the closing of the Minimum Offering all subscription proceeds will be held in escrow at U.S. Bank.”Not stated
Audited financials
Cash flow & horizonannual distributions · hold n/s▶
Distribution policy
Targets distributions — AnnualBegins not less frequently than annually or within sixty (60) days following the end of each taxable year of the CompanyTargeted, at manager's discretionDistributions are a target at the manager’s discretion — not a guarantee.p.8“Except as otherwise provided in Section 4 below (with respect to liquidating distributions), all of the Company's Available Cash from Operations shall be distributed to the Members not less frequently than annually or within sixty (60) days following the end of each taxable year of the Company”
Capital stack
3 share classes — your class's priority in the money line depends on the waterfall.
Not stated
Hold / fund life
Governanceno LP removal▶
Removal & amendments
No LP right to remove the manager
Amendments require an LP supermajority
Reporting
Annual unaudited financial statements plus tax information needed for members' federal income tax returns within 90 days after the Company's taxable year-end; quarterly profit-and-loss/income statements within 35 days after each calendar quarter-end; the Company anticipates providing estimated annual federal tax information to members before April 15.
Source
p.24“A Manager may only be removed by the vote of the Class A Member.”
Document quality7/12 findable · 94 pp▶
Key-term findability
7 of 12 key questions answered.
- ✓Preferred return
- ✓Profit split / promote
- ✓Distribution waterfall
- ✓Fee schedule
- ✓GP commitment
- —Audited financials
- ✓Distribution policy
- —Lock-up / liquidity
- —Fund life / hold
- —Leverage cap
- ✓Minimum investment
- —Conflicts / related-party
Structural complexity
LP classes: 3Cash pools: 3Max tier depth: 7Conditional branches: 2
More moving parts, not necessarily worse — takes longer to understand.Document heft
94 pages
Fee-load figures are modeled estimates from extracted terms, not a guarantee. Peer context is shown to Analyst-tier members.
Deal diligence4 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.
Diligence gaps
Questions a standard diligence questionnaire would ask that the PPM leaves unanswered.
DDQ gap: What is the LP/GP carried-interest split above the preferred return?
HighThe 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?
MediumThe 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 key-person provision?
MediumThe 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 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.
79%
Coverage
15 answered0 partial4 gaps19 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?Gap
- Is there a GP catch-up, and at what rate?No GP catch-up.Answered
- Does the fund have a GP clawback provision?No clawback provision disclosed.Answered
- What is the GP's capital commitment (skin in the game)?GP commitment of 0%.Answered
Structure
- What distribution-waterfall structure does the fund use?Waterfall type: Tiered with Class B Bonus Return.Answered
- What is the fund's investment strategy / asset class?Equity · Mobile Home Parks (Manufactured Housing)Answered
- What is the fund's vintage year?Vintage 2015.Answered
- What is the target offering size?Target offering of $5,000,000.Answered
- What is the minimum LP investment?Minimum investment of $50,000.Answered
- Are investor subscriptions protected by a minimum-offering escrow?Subscriptions are held in escrow until a minimum is met.Answered
- Is the securities-offering exemption and investor-eligibility standard disclosed?Offering exemption disclosed (accredited).Answered
Fees & Expenses
- Is the fund's fee schedule disclosed (management fee, etc.)?5 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
- Do investors have the right to remove the manager / general partner?The PPM states investors have NO right to remove the manager.Answered
- Are material amendments to the operating agreement subject to investor consent?Amendments require an investor supermajority.Answered
- Is there a key-person provision?Gap
Distributions
- Is the fund's distribution policy disclosed?Distribution policy stated (annual).Answered
Fee scheduletaken before LP distributions
Modeled load 41.5% of equity over a 5-yr base caseFee
Trigger
Basis
Rate
Guaranty Fee
When Member or Affiliate guarantees Company obligations
Total Guaranteed Obligations
2.50%
Referral/Marketing Fee
Upon investor admission via referral
Capital Contributions of referred Member
8.00%
Service providers3 gaps
Legal Counsel
Not disclosed
No independent counsel named for investors. Common in small syndications where Manager and Fund share counsel — reduces independence. Verify during diligence.
Auditor
Not disclosed
Audit intent not stated in PPM. Ask the sponsor: will the fund be audited, by whom, and on what frequency?
Fund Administrator
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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