Proinvest Realty Fund LLC

Cascade · Distributions

Where each dollar goes

$875K

LP $798K · Fees $78K · GP $0

Standard scenario · $500K equity · 5y hold · 1.75× exitRun your own cascade →

Class structure · 2 classes· viewing as Manager Interest (Proinvest)

How Proinvest Realty Fund LLC divides the cap table

The cascade above is filtered to Manager Interest (Proinvest). Reset to blended view.

Investor Member Units
membership interest
“the distributions to Proinvest would include distributions of twenty-five percent (25%) of distributions after the Investor Members have received distributions equal to the cumulative Preferential Return and all unreturned capital contributions.”— PPM p. 12
Manager Interest (Proinvest)● active
membership interest
“the allocation to Proinvest would be an allocation of twenty-five percent (25%) of net income, after Investor Members have received allocations equal to all prior losses, the cumulative Preferential Return, and all unreturned capital contributions.”— PPM p. 12

Deal diligence16 findings · worst high

Automated checks across the fund's extracted PPM. Every finding is shown with the evidence it's based on — proven numbers or a verbatim quote and page.

Waterfall structure

Structural checks run against Proinvest Realty Fund LLC's extracted waterfall. Each is a deterministic test — the numbers shown are proven from the PPM, not estimated.

Disposition Fee (2%) is taken above the waterfall

Medium

A 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.

“Proinvest shall be paid a Disposition Fee in the amount of two percent (2%) of the gross sales price or finance amount or capitalized lease amount [for any long-term lease in excess of ten years] upon any Disposition of any Asset.”

PPM p.1185% confidence

Document quality

Drafting defects found in the PPM prose — numeric inconsistencies, broken cross-references, unfilled placeholders, and defined-term problems. Each is shown with the offending quote and its page.

Broken cross-reference — Acquisition Reports content list (vi)/(v)/(vi)

Low

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.

“(iii) the present or proposed use of such Asset; (vi) the terms of any material lease affecting such Asset; (v) a description of the proposed method of financing, including estimated down payment and leverage ratio; and (vi) if known to Proinvest”

PPM p.780% confidence

Broken cross-reference — flood insurance coverage clause (i)/(iii)

Low

Enumeration error: the coverage clause lists sub-items '(i)' then '(iii)', skipping '(ii)', so the lesser-of test references a non-existent item.

“an amount representing coverage not less than the lesser of (i) the full insurable value of the affected Asset, or (iii) the maximum amount of insurance which is available under the Flood Disaster Protection Act of 1973”

PPM p.380% confidence

Defined-term defect — Initial Term

Low

The defined term 'Initial Term' is parenthetically defined twice within a single sentence, a redundant/garbled definition.

“This Agreement shall continue in force until ten (10) years (the 'Initial Term') after the date hereof (the 'Initial Term') unless earlier terminated in accordance with Article XII”

PPM p.185% confidence

Document-quality defect — ADisposition@

Low

The defined term 'Disposition' is rendered as the garbled token 'ADisposition@' (corrupted quotation marks), an unfinished/mis-encoded defined-term usage.

“The term ADisposition@ shall be construed to include all events or circumstances under which the members of the Owner might reasonably expect to receive a return of all or part of their capital contribution.”

PPM p.1490% confidence

Spelling / typo — An soon as practicable

Info

Typo: 'An soon as practicable' should read 'As soon as practicable'.

“The protection against errors and omissions shall be in the amount of at least $3,000,000. An soon as practicable after the date”

PPM p.1790% confidence

Spelling / typo — ether insurance

Info

Typo: 'workers' compensation and ether insurance' should read 'and other insurance'.

“comprehensive general liability, automobile liability, workers' compensation and ether insurance to protect the interest of Proinvest”

PPM p.1790% confidence

Diligence gaps

Questions a standard diligence questionnaire would ask that the PPM leaves unanswered.

DDQ gap: Does the fund engage an independent auditor?

High

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.

90% confidence

DDQ gap: Does the fund have a GP clawback provision?

High

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.

90% confidence

DDQ gap: What is the LP/GP carried-interest split above the preferred return?

High

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.

90% confidence

DDQ gap: What is the preferred return (hurdle) rate offered to LPs?

High

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.

90% confidence

DDQ gap: Does the fund use a third-party fund administrator?

Medium

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.

90% confidence

DDQ gap: Is there a GP catch-up, and at what rate?

Medium

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.

90% confidence

DDQ gap: What is the GP's capital commitment (skin in the game)?

Medium

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.

90% confidence

DDQ gap: What is the target offering size?

Medium

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.

90% confidence

DDQ gap: What is the minimum LP investment?

Low

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.

90% confidence

DDQ readiness

How much of a standard institutional due-diligence questionnaire this fund's offering documents answer out of the box. Gaps are questions an allocator will ask directly.

23%

Coverage

3 answered1 partial9 gaps13 questions

Economics

What is the preferred return (hurdle) rate offered to LPs?Gap
What is the LP/GP carried-interest split above the preferred return?Gap
Is there a GP catch-up, and at what rate?Gap
Does the fund have a GP clawback provision?Gap
What is the GP's capital commitment (skin in the game)?Gap

Structure

What distribution-waterfall structure does the fund use?3 distribution tier(s) extracted; structure type not classified.Partial
What is the fund's investment strategy / asset class?UnknownAnswered
What is the fund's vintage year?Vintage 2007.Answered
What is the target offering size?Gap
What is the minimum LP investment?Gap

Fees & Expenses

Is the fund's fee schedule disclosed (management fee, etc.)?6 fee line item(s) extracted from the offering documents.Answered

Governance

Does the fund engage an independent auditor?Gap
Does the fund use a third-party fund administrator?Gap

Generate IC memo →

Fee scheduletaken before LP distributions

Total load 14.00%

Fee

Trigger

Basis

Rate

Property Advisory Fee (Acquisition Fee)

Closing and funding of the purchase of any Asset

2% of gross Contract Purchase Price for each Asset acquired; also 2% of capitalized amounts used to develop, construct, rehabilitate or improve an Asset. Gross Contract Purchase Price includes stated purchase price plus all other amounts paid by or for which Owner is liable, including debt secured by the Asset.

2.00%

Refinancing Fee

Closing and funding of a refinancing loan (not initial acquisition)

0.75% (75 basis points) of the principal amount of any loan incurred to finance or refinance an Asset, excluding any loan incurred in connection with the initial acquisition of the Asset.

0.00%

Disposition Fee

Closing and funding or other settlement of any Disposition

2% of the gross sales price or finance amount or capitalized lease amount upon any Disposition of any Asset.

2.00%

Asset Management Fee

Monthly, ongoing during term of agreement

Annual fee equal to the sum of (1) not more than 1.0% of Asset Value, plus (2) not more than 0.5% of cash held in bank accounts, money market funds or similar accounts. Payable monthly (1/12 of annual fee). Accrued but unpaid fees deferred without interest, payable in subsequent periods after all other costs and expenses (other than Preferential Return).

0.00%

Construction Management / Development Fee

Development or construction of Assets

Not exceeding 10% of the direct costs of any development or construction (excluding construction site personnel and utilities). Must be comparable to and competitive with amounts charged by third parties in the same geographic area.

10.00%

Acquisition Expense Reimbursement

Asset acquisitions (whether or not completed)

Reimbursement of acquisition expenses (legal fees, travel, title insurance, closing costs) not to exceed 0.5% of Contract Purchase Price of each Asset. For properties not acquired, reimbursed at actual amount incurred.

0.00%

Service providers3 gaps

Provider network →

Legal Counsel

Gap

Not disclosed

No independent counsel named for investors. Common in small syndications where Manager and Fund share counsel — reduces independence. Verify during diligence.

Auditor

Gap

Not disclosed

Audit intent not stated in PPM. Ask the sponsor: will the fund be audited, by whom, and on what frequency?

Fund Administrator

Gap

Not disclosed

No third-party fund administrator referenced. Manager likely handles admin internally — common for <$10M raises but reduces independence.

Placement Agent

No placement agent engaged

No placement agent engaged. Direct placement by Manager — no placement fees eat your invested capital.

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Waterfalls Composite Score

56.7.

LP-favorability score · 5 weighted dimensions

Benchmark · Real Estate Equity

Diversified Real Estate

See where this fund sits across 189 indexed diversified real estate funds — median pref, hurdle, splits, GP commit.

Compare to bucket →

Score breakdown5 dimensions

Absolute LP Takeⓘ83

GP Timing Riskⓘ38

Pref Qualityⓘ65

Fee Dragⓘ23

Alignmentⓘ32

LP take × exit multiple

at 5y hold · 91% at 1.75×

LP take Fee drag· sim at $500k equity

Exit	LP IRR	LP MoC	LP Take	Fees
1.00×	-3.0%	0.86×	86.0%	14.0%
1.50×	6.2%	1.35×	90.0%	10.0%
1.75×	9.8%	1.59×	91.1%	8.9%
2.00×	13.0%	1.84×	92.0%	8.0%
2.50×	18.4%	2.33×	93.2%	6.8%
3.00×	23.0%	2.82×	94.0%	6.0%

Jump to an exit

1.0× downside 1.5× base 2.0× upside 3.0× home run

Proinvest Realty Fund LLC

Investor Member Units

Manager Interest (Proinvest)● active

Waterfall structure

Disposition Fee (2%) is taken above the waterfall

Document quality

Broken cross-reference — Acquisition Reports content list (vi)/(v)/(vi)

Broken cross-reference — flood insurance coverage clause (i)/(iii)

Defined-term defect — Initial Term

Document-quality defect — ADisposition@

Spelling / typo — An soon as practicable

Spelling / typo — ether insurance

Diligence gaps

DDQ gap: Does the fund engage an independent auditor?

DDQ gap: Does the fund have a GP clawback provision?

DDQ gap: What is the LP/GP carried-interest split above the preferred return?

DDQ gap: What is the preferred return (hurdle) rate offered to LPs?

DDQ gap: Does the fund use a third-party fund administrator?

DDQ gap: Is there a GP catch-up, and at what rate?

DDQ gap: What is the GP's capital commitment (skin in the game)?

DDQ gap: What is the target offering size?

DDQ gap: What is the minimum LP investment?

DDQ readiness

Fee scheduletaken before LP distributions

Community threads0 active

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