United Development Funding IV

Cascade · Distributions

Where each dollar goes

$875K

LP $875K · Fees $0 · GP $0

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

Deal diligence14 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.

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.

Document-quality defect — UNITED DEVELOPMENT FUND IV OPERATING PARTNERSHIP, L.P.

Medium

The cover page / table-of-contents caption names the issuer 'United Development FUND IV' but the executed agreement, recitals, signature pages and Exhibit A all name it 'United Development FUNDING IV', creating a mismatched issuer name in the header vs. the body.

“UNITED DEVELOPMENT FUND IV OPERATING PARTNERSHIP, L.P. ... AGREEMENT OF LIMITED PARTNERSHIP OF UNITED DEVELOPMENT FUNDING IV OPERATING PARTNERSHIP, L.P.”

PPM p.190% confidence

Broken cross-reference — Section 9.2(b)

Low

Broken enumeration in Section 9.2(b): the list of permitted withdrawals jumps from clause (i) directly to clause (iii), omitting clause (ii) entirely.

“No Limited Partner may withdraw from the Partnership other than as a result of: (i) a permitted Transfer (i.e., a Transfer consented to as contemplated by paragraph (a) above or paragraph (c) below or a Transfer made pursuant to Section 9.5 below) of all of its Partnership Units pursuant to this Article IX pursuant to an exchange of all of its Partnership Units pursuant to Section 8.5 above; or (iii) a Transfer made pursuant to the sale of all its Partnership Units pursuant to Section 8.6 above.”

PPM p.3985% confidence

Spelling / typo — chance the terms

Info

Typo in the General Partner's enumerated borrowing powers: 'chance the terms' should read 'change the terms' (compare the parallel clause (vi) which correctly says 'change the terms').

“refinance, increase the amount of, modify, amend or chance the terms of, or extend the time for the payment of, any such indebtedness”

PPM p.1885% confidence

Spelling / typo — which. if presented

Info

Broken sentence in Section 6.6 with an erroneous period mid-sentence: 'of a character which. if presented' should read 'of a character which, if presented'.

“even if such opportunity is of a character which. if presented to the Partnership or any Limited Partner, could be taken by such Person.”

PPM p.2980% 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: Is the fund's fee schedule disclosed (management fee, etc.)?

High

The offering documents don't answer a standard institutional DDQ question (Fees & Expenses). 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.

15%

Coverage

2 answered1 partial10 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?4 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 2008.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.)?Gap

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

No fees extracted from the PPM.

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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Score breakdown5 dimensions

Absolute LP Takeⓘunscored—

GP Timing Riskⓘ25

Pref Qualityⓘ30

Fee Dragⓘunscored—

Alignmentⓘ20

LP take × exit multiple

at 5y hold · 100% at 1.75×

LP take Fee drag· sim at $500k equity

Exit	LP IRR	LP MoC	LP Take	Fees
1.00×	0.0%	1.00×	100.0%	0.0%
1.50×	8.4%	1.50×	100.0%	0.0%
1.75×	11.8%	1.75×	100.0%	0.0%
2.00×	14.9%	2.00×	100.0%	0.0%
2.50×	20.1%	2.50×	100.0%	0.0%
3.00×	24.6%	3.00×	100.0%	0.0%

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