MHPI V, LLC

Key economics

Preferred return

8%

Hurdle rate

—

LP / GP split

80% / 20%

GP catch-up

No

GP clawback

No

GP commitment

—

Diligence findings (8 · 3 high/critical)

• critical
  All Distributions tier 7 over-allocates: shares sum to 180%, not 100%
• high
  DDQ gap: Do investors have the right to remove the manager / general partner?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 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.
• medium
  DDQ gap: Are material amendments to the operating agreement subject to investor consent?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: 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 key-person provision?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: 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.
• low
  No 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 — 68% covered

13 answered · 0 partial · 6 gaps of 19 standard questions.