Multi-Housing Income REIT, LLC

Key economics

Preferred return

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Hurdle rate

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LP / GP split

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GP catch-up

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GP clawback

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GP commitment

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Diligence findings (14 · 5 high/critical)

• 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.
• high
  DDQ gap: Does the fund have a GP clawback provision?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.
• high
  DDQ gap: What is the LP/GP carried-interest split above the preferred return?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.
• high
  DDQ gap: What is the preferred return (hurdle) rate offered to LPs?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.
• high
  Numeric inconsistency — Minimum initial investment (175 Common Shares at $11.29)Stated minimum investment of $2,007.25 does not equal price times units: 175 Common Shares at $11.29 each is $1,975.75, not $2,007.25.
• 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 GP catch-up, and at what rate?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.
• medium
  DDQ gap: What distribution-waterfall structure does the fund use?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.
• 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.
• medium
  Disposition Fee (2%) is taken above the waterfallA 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.
• medium
  Numeric inconsistency — Count of completed 'round trip' programs (26 vs 32)The same set of completed-cycle projects is stated as 26 in one sentence and as 32 in the very next sentence introducing the same table.
• low
  Broken cross-reference — Exhibit reference for the LLC Agreement (1A-2E / 1A-2B)The LLC Agreement is cited as Exhibit 1A-2E here (and as Exhibit 1A-2B elsewhere), but the exhibit index lists 1A-2D as the Limited Liability Company Agreement and 1A-2B as the Delaware Certificate of Formation; no Exhibit 1A-2E exists.
• low
  Document-quality defect — LLC Agreement date 'January March 1, 2022'Garbled, logically impossible date for the LLC Agreement that mashes together two months ('January March 1, 2022'); elsewhere the same agreement is dated January 17, 2022 and March 1, 2022.
• info
  Spelling / typo — Doubled phrase 'the Company, the Company' in glossaryGlossary definition of 'Offering Circular' contains a doubled-phrase scrivener error ('the Company, the Company').

DDQ readiness — 38% covered

5 answered · 0 partial · 8 gaps of 13 standard questions.