Investment Committee Memo · Waterfalls
MHPI V, LLC
MHP Management, LLC · Mobile Home Parks · Equity · Vintage 2015
54
Waterfalls composite LP-favorability score (0–100)
84
LP take (absolute)
82
Pref quality
0
Fee drag
18
GP alignment
32
Timing risk
Key economics
- Preferred return
- 8%
- Hurdle rate
- —
- LP / GP split
- 80% / 20%
- GP catch-up
- No
- GP clawback
- No
- GP commitment
- —
Diligence findings (5 · 2 high/critical)
- criticalAll Distributions tier 7 over-allocates: shares sum to 180%, not 100%
- 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.
- 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 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.
- lowNo clawback provision — promote paid is not trued-up to the LP at wind-downThe fund pays the GP carried interest but has no clawback. If interim distributions over-pay promote relative to lifetime results, the LP cannot recover the difference. Common in real-estate funds, but worth confirming against the distribution timing.
DDQ readiness — 77% covered
10 answered · 0 partial · 3 gaps of 13 standard questions.