Investment Committee Memo · Waterfalls
North Star Recovery & Wellness, LLC
North Capital Private Securities Corp. · Residential RE · Debt · Vintage 2019
55
Waterfalls composite LP-favorability score (0–100)
89
LP take (absolute)
40
Pref quality
36
Fee drag
15
GP alignment
35
Timing risk
Key economics
- Preferred return
- 6%
- Hurdle rate
- —
- LP / GP split
- 80% / 20%
- GP catch-up
- No
- GP clawback
- —
- GP commitment
- —
Diligence findings (5 · 2 high/critical)
- 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.
- highDDQ 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.
- 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 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.
- 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.
DDQ readiness — 62% covered
8 answered · 0 partial · 5 gaps of 13 standard questions.