Proinvest Realty Fund 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 (16 · 4 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.
• 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 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
  DDQ gap: What is the target offering size?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
  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.
• low
  Broken cross-reference — Acquisition Reports content list (vi)/(v)/(vi)Garbled enumeration in the Acquisition Report contents: sequence runs (i),(ii),(iii) then mislabels the fourth item '(vi)', then '(v)', then '(vi)' again — two items share label (vi) and (iv) is missing.
• low
  Broken cross-reference — flood insurance coverage clause (i)/(iii)Enumeration error: the coverage clause lists sub-items '(i)' then '(iii)', skipping '(ii)', so the lesser-of test references a non-existent item.
• low
  DDQ gap: What is the minimum LP investment?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.
• low
  Defined-term defect — Initial TermThe defined term 'Initial Term' is parenthetically defined twice within a single sentence, a redundant/garbled definition.
• low
  Document-quality defect — ADisposition@The defined term 'Disposition' is rendered as the garbled token 'ADisposition@' (corrupted quotation marks), an unfinished/mis-encoded defined-term usage.
• info
  Spelling / typo — An soon as practicableTypo: 'An soon as practicable' should read 'As soon as practicable'.
• info
  Spelling / typo — ether insuranceTypo: 'workers' compensation and ether insurance' should read 'and other insurance'.

DDQ readiness — 23% covered

3 answered · 1 partial · 9 gaps of 13 standard questions.