PFG Fund V, 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 (17 · 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 — Maximum broker & affiliate commissions and fees, Per NotePer-Note maximum broker/affiliate commission is stated as $550 in the cover-page offering summary but $700.00 in the Plan of Distribution commission table for the same $10,000 Note; only the $550 figure (5.5% of $10,000) reconciles to the stated 5.5% / $4,125,000 cap.
• 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
  Document-quality defect — Amendment financial-data reporting dateAmendment No. 2's stated purpose says it provides 'updated financial data as of December 31, 2023,' but the same page bases the update on the Form 1-K 'for the year-end December 31, 2022' and is headed 'Reporting Date 12-31-2022' — inconsistent financial-data dates.
• medium
  Numeric inconsistency — Pine Financial default-rate / loans-originated statisticsThe same prior-performance statistic is stated two different ways in back-to-back near-identical paragraphs on the Description of Business page: 26 properties out of 1,690 loans for a 1.54% default rate versus 39 properties out of 2143 loans for a 2.15% default rate.
• low
  Defined-term defect — Common StockEquity-template boilerplate refers to investors purchasing 'the Common Stock' in what is an offering of 8% Unsecured Promissory Notes, with no common stock being offered.
• low
  Defined-term defect — selling stockholdersThe document refers to 'the Company and the selling stockholders' although this is a primary Notes offering by the Company with no selling stockholders, indicating carried-over equity-offering language.
• low
  Document-quality defect — Period Ended Dec. 30, 2022Financial-statement column header reads 'Period Ended Dec. 30, 2022' — a logically wrong fiscal period-end (Dec 30) where the companion columns correctly read Dec. 31, 2021 and Dec. 31, 2020.
• low
  Numeric inconsistency — Foreclosure cost rangeThe Minnesota foreclosure cost range is stated as '$3,500 and $4,000' in one paragraph and '$3,500 and $4,500' in the parallel paragraph on the same/next page.
• low
  Numeric inconsistency — Pine Financial Group employee / contractor / office countHeadcount is stated as 'nine (9) full time employees, three (4) independent contractors and two (2) offices' (internally inconsistent: word 'three' with numeral '4'), contradicting 'three full time employees, three independent contractors and two offices' stated later in the same document.
• info
  Spelling / typo — does not currently takingBroken verb agreement in substantive fee-disclosure text: 'does not currently taking a management fee.'

DDQ readiness — 38% covered

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