United Development Funding IV

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 (14 · 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: Is the fund's fee schedule disclosed (management fee, etc.)?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.
• 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 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
  DDQ gap: What is the target offering size?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
  Document-quality defect — UNITED DEVELOPMENT FUND IV OPERATING PARTNERSHIP, L.P.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.
• low
  Broken cross-reference — Section 9.2(b)Broken enumeration in Section 9.2(b): the list of permitted withdrawals jumps from clause (i) directly to clause (iii), omitting clause (ii) entirely.
• low
  DDQ gap: What is the minimum LP investment?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.
• info
  Spelling / typo — chance the termsTypo 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').
• info
  Spelling / typo — which. if presentedBroken 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'.

DDQ readiness — 15% covered

2 answered · 1 partial · 10 gaps of 13 standard questions.