Realm Metaverse Real Estate Inc.

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 (13 · 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 — Class A / Class B authorized sharesAuthorized share counts in the audited balance sheet (and Note 4) contradict the body of the circular: the balance sheet states Class A = 80,000 / Class B = 20,000, while the 'Securities Being Offered' section and Note 6 state Class A = 20,000 / Class B = 160,000.
• 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
  Incentive Management Fee (25%) 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
  Numeric inconsistency — Metajuku project size: 16,000 sq ft vs 256 sq mThe Metajuku development is described as '16,000 square foot (256 square meter)', but the two figures are not equivalent (16,000 sq ft is approximately 1,486 sq m; 256 sq m is approximately 2,756 sq ft), so the parenthetical conversion is wrong.
• info
  Spelling / typo — 96 blocks of withTypo in the description of a Sandbox LAND parcel: 'with' is written where 'width' is meant ('96 blocks of depth, 96 blocks of with, and 128 blocks of height').
• info
  Spelling / typo — the a third party service providerBroken phrasing with a doubled/stray article: 'with the a third party service provider' should read 'with a third party service provider'.

DDQ readiness — 38% covered

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