Red Oak Capital Fund IV, LLC

Key economics

Preferred return

—

Hurdle rate

—

LP / GP split

—

GP catch-up

—

GP clawback

—

GP commitment

—

Diligence findings (12 · 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 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
  Disposition Fee (1%) 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.
• info
  Spelling / typo — COMMISIONMisspelling of 'COMMISSION' in the bold, all-caps SEC legend on the cover-page disclosure.
• info
  Spelling / typo — complying the with 25% limitationGarbled 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).
• info
  Spelling / typo — The Bonds be protected by limited restrictive covenantsBroken sentence in a risk-factor heading: the verb is missing (should read 'The Bonds will be protected by' or 'may be protected by').

DDQ readiness — 38% covered

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