XIV-I INVEST 1, 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 · 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 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
  Document-quality defect — Fund name mismatch — 'XIV-I Invest 1, LLC' vs 'XIV-I Investment 1, LLC' / 'XIV-I INVESTMENET 1, LLC'The offering circular names the issuer 'XIV-I Invest 1, LLC' throughout, but the audited financial statements repeatedly call it 'XIV-I Investment 1, LLC,' and one statement header even reads 'XIV-I INVESTMENET 1, LLC' (a misspelling of INVESTMENT), an inconsistent/garbled issuer name in a material exhibit.
• medium
  GP earns a promote but no tier returns LP capital firstThe waterfall pays the GP a promote/carry, yet none of the extracted tiers return the LP's contributed capital before that promote runs. Either the PPM omits a return-of-capital step or the extractor missed it — either way the distribution section is worth a read.
• medium
  Numeric inconsistency — Aggregate Class A capital — words 'Seventy Five Million' vs figure '$75,000,0000.00'In the financial-statement notes the aggregate Class A capital is written out as 'Seventy Five Million and 00/100 Dollars' but the parenthetical numeral reads $75,000,0000.00 (an extra zero, i.e. $750,000,000), contradicting the spelled-out amount and the $75,000,000 maximum offering stated throughout.
• medium
  Numeric inconsistency — Maximum net proceeds to the issuer ($74,175,000.00 vs $74,150,000.00)The cover Offering Proceeds Table states maximum 'Proceeds to the issuer' of $74,175,000.00, but the Use of Proceeds table states maximum 'Net Deployable Proceeds' of $74,150,000.00 for the same 100%/$75,000,000 raise — the two stated net-proceeds figures differ by $25,000.
• low
  Broken cross-reference — Conflicts of Interest cross-reference to 'Page 35'The summary directs readers to the Conflicts of Interest section 'beginning on Page 35,' but Conflicts of Interest actually appears at internal page 18 (per the Table of Contents and body); internal page 35 contains Liquidation Rights, so the pointer is wrong.
• low
  Broken cross-reference — Risk Factors cross-references disagree (Page 11 vs Page 8)The summary cites the Risk Factors section as starting on two different pages — 'starting on Page 11' on the cover summary and 'starting on Page 8' in the Conflicts of Interest summary — while the Table of Contents lists Risk Factors at page 5; the internal cross-references contradict each other.
• low
  Spelling / typo — 'Investment Fund Act of 1940' (should be 'Investment Company Act of 1940')The accredited-investor definition refers to a registered investment company being registered under the 'Investment Fund Act of 1940'; the statute is the Investment Company Act of 1940, a substantive misnaming of the governing law.
• info
  Spelling / typo — 'capactiy' (should be 'capacity')In the amendment cover note describing the updated signature page, 'capacity' is misspelled 'capactiy' in substantive text.

DDQ readiness — 38% covered

5 answered · 1 partial · 7 gaps of 13 standard questions.