Red Oak Capital Fund IV, LLC

Cascade · Distributions

Where each dollar goes

$875K

LP $823K · Fees $53K · GP $0

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

Class structure · 4 classes

How Red Oak Capital Fund IV, LLC divides the cap table

The cascade above models the blended LP view. Click a class below to view per-class economics.

Series A Bonds
debt
Min · $10K
“6.25% Senior Secured Bonds (Series A Bonds)”— PPM p. 1
Series B Bonds
debt
Min · $10K
“8.25% Senior Secured Bonds (Series B Bonds)”— PPM p. 1
Series Ra Bonds
debt
Min · $10K
“6.5% Senior Secured Bonds (Series Ra Bonds)”— PPM p. 1
Series Rb Bonds
debt
Min · $10K
“9.0% Senior Secured Bonds (Series Rb Bonds)”— PPM p. 1

Deal diligence12 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 Red Oak Capital Fund IV, LLC's extracted waterfall. Each is a deterministic test — the numbers shown are proven from the PPM, not estimated.

Disposition Fee (1%) 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.

“Our Manager will be paid a disposition fee of 1.00% of the proceeds received from the repayment of the principal amount of any of our debt investments or any other disposition of the underlying real estate.”

PPM p.6585% 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.

Spelling / typo — COMMISION

Info

Misspelling of 'COMMISSION' in the bold, all-caps SEC legend on the cover-page disclosure.

“THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE SEC; HOWEVER, THE COMMISION HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED ARE EXEMPT FROM REGISTRATION.”

PPM p.495% confidence

Spelling / typo — complying the with 25% limitation

Info

Garbled word order ('complying the with' instead of 'complying with the') in the debt-limit covenant language, repeated verbatim three times across the document (pages 7, 12 and 58).

“For purposes of complying the with 25% limitation described above, any principal owed on the Bonds will not count as indebtedness.”

PPM p.790% confidence

Spelling / typo — The Bonds be protected by limited restrictive covenants

Info

Broken sentence in a risk-factor heading: the verb is missing (should read 'The Bonds will be protected by' or 'may be protected by').

“The Bonds be protected by limited restrictive covenants, which in turn may allow us to engage in a variety of transactions that may impair our ability to fulfill our obligations under the Bonds.”

PPM p.1285% 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 distribution-waterfall structure does the fund use?

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 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 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.

38%

Coverage

5 answered0 partial8 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?Gap
What is the fund's investment strategy / asset class?UnknownAnswered
What is the fund's vintage year?Vintage 2018.Answered
What is the target offering size?Target offering of $50,000,000.Answered
What is the minimum LP investment?Minimum investment of $10,000.Answered

Fees & Expenses

Is the fund's fee schedule disclosed (management fee, etc.)?8 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 15.90%

Fee

Trigger

Basis

Rate

Selling Commission - Series A Bonds

Bond sale

Gross offering proceeds on sale of Series A Bonds

1.95%

Selling Commission - Series B Bonds

Bond sale

Gross offering proceeds on sale of Series B Bonds

6.25%

Managing Broker-Dealer Fee

Bond sale; paid in equal quarterly installments

Gross proceeds of the offering (up to 0.95%); paid quarterly

0.95%

Wholesaling Fee

Bond sale via certain selling group members; paid in equal quarterly installments

Gross proceeds of the offering (up to 1.00%); paid quarterly

1.00%

Nonaccountable Expense Reimbursement

Bond sale (Series A and Series B only)

Gross offering proceeds on sale of Series A Bonds and Series B Bonds; not charged on Ra/Rb

1.00%

Organization and Offering Fee (O&O Fee)

Offering proceeds receipt

Gross offering proceeds; Manager retains excess over actual O&O expenses as compensation

2.00%

Asset Management Fee

Ongoing; paid quarterly

Annual rate on outstanding principal amount of the Bonds; paid quarterly in advance

1.75%

Disposition Fee

Loan repayment or real estate disposition

Proceeds received from repayment of principal of debt investments or disposition of underlying real estate

1.00%

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

23.1.

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ⓘunscored—

GP Timing Riskⓘ15

Pref Qualityⓘ15

Fee Dragⓘ48

Alignmentⓘ15

LP take × exit multiple

at 5y hold · 94% at 1.75×

LP take Fee drag· sim at $500k equity

Exit	LP IRR	LP MoC	LP Take	Fees
1.00×	-2.0%	0.90×	90.3%	9.8%
1.50×	6.9%	1.40×	93.2%	6.8%
1.75×	10.5%	1.65×	94.0%	6.0%
2.00×	13.6%	1.89×	94.6%	5.4%
2.50×	19.0%	2.39×	95.5%	4.5%
3.00×	23.6%	2.88×	96.1%	3.9%

Jump to an exit

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

Red Oak Capital Fund IV, LLC

Series A Bonds

Series B Bonds

Series Ra Bonds

Series Rb Bonds

Waterfall structure

Disposition Fee (1%) is taken above the waterfall

Document quality

Spelling / typo — COMMISION

Spelling / typo — complying the with 25% limitation

Spelling / typo — The Bonds be protected by limited restrictive covenants

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 distribution-waterfall structure does the fund use?

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

DDQ readiness

Fee scheduletaken before LP distributions

Community threads0 active

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