Red Oak Capital Fund VII, 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 (15 · 6 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 — Bond maturity date (December 31, 2029 vs December 31, 2028)The offering-circular body states the Bonds mature December 31, 2029, but the audited financial statements (Note 4) state the maturity date is December 31, 2028 — a one-year discrepancy on a core economic term.
• high
  Numeric inconsistency — Series/interest-rate structure (single 8.00% Series A on cover vs A Bonds at 8.00% and Ra Bonds at 8.65% in financials)The cover and summary market a single series of 8.00% Series A Bonds, but the audited financial statements describe a two-series structure (A Bonds and Ra Bonds) paying 8.00% and 8.65% per annum respectively — the higher-rate Ra Bonds are never disclosed in the offering body.
• 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 (0.5%) 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.
• medium
  Unfilled placeholder text — [●]Unfilled bracket placeholder for the Risk Factors page reference on the cover-page disclosure — the page number was never inserted.
• low
  Unfilled placeholder text — beginning on page of this offering circularTemplate page-reference token left blank in the summary Risk Factors caption — the page number that should follow 'beginning on page' was never filled in.
• info
  Spelling / typo — COMMISIONMisspelling of 'COMMISSION' in the bold all-caps SEC legend on the cover-page disclosure.
• info
  Spelling / typo — principals of our Sponsor principals of our SponsorDoubled phrase ('principals of our Sponsor' repeated) creating a broken sentence in the Sponsor description.

DDQ readiness — 38% covered

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