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Andrew Arroyo Real Estate Inc.

Sponsored by Andrew Arroyo Real Estate·

Residential RE· Debt· REIT · 1 class· ● High· PPM v1· Updated 2mo ago
2 data notes
Unusual structureLow-confidence extraction
Run the numbers
Composite
47.6
median 36 +12
Pref Return
6%
median 8.0% 2.0%
LP Take (Base)
87.3%
median 85.9% +1.4%
GP Commit
0.0%
median 0.0% +0.0%
Min Investment
$1K
ticket size
Offering Size
$72M
target raise
Cascade · Distributions

Where each dollar goes

$875K
LP $764K · Fees $94K · GP $17K
GROSS PROCEEDS$875KGPFFees to Manager$94,375 · 10.8% of grossLPT1Return of Capital$500,000 · 57.1% of grossLPT2Preferred Return (6%)$150,000 · 17.1% of grossGPT3GP Catch-up (6%)$9,574 · 1.1% of grossLPGPT4Residual Split (94% / 6%) · 13.8%Limited Partners · $114KGeneral Partner · $7Kpool fully distributed
Standard scenario · $500K equity · 5y hold · 1.75× exitRun your own cascade →

Deal diligence6 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.

Waterfall structure

Structural checks run against Andrew Arroyo Real Estate Inc.'s extracted waterfall. Each is a deterministic test — the numbers shown are proven from the PPM, not estimated.

A 6% preferred return is stated but no waterfall tier pays it

Medium

Key economics declare a preferred return, yet none of the extracted distribution tiers reference a pref/hurdle or carry a threshold rate. A pref that lives only in the summary — not the distribution mechanics — may not be contractually enforceable.

90% 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: 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: 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 fund's vintage year?

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.

54%
Coverage
7 answered1 partial5 gaps13 questions
Economics
  • Does the fund have a GP clawback provision?Gap
  • What is the preferred return (hurdle) rate offered to LPs?Preferred return of 6%.Answered
  • What is the LP/GP carried-interest split above the preferred return?94% LP / 6% GP residual split.Answered
  • Is there a GP catch-up, and at what rate?Yes — GP catch-up provision present.Answered
  • What is the GP's capital commitment (skin in the game)?Gap
Structure
  • What distribution-waterfall structure does the fund use?1 distribution tier(s) extracted; structure type not classified.Partial
  • What is the fund's investment strategy / asset class?Debt · Residential REAnswered
  • What is the fund's vintage year?Gap
  • What is the target offering size?Target offering of $72,082,500.Answered
  • What is the minimum LP investment?Minimum investment of $1,036.Answered
Fees & Expenses
  • Is the fund's fee schedule disclosed (management fee, etc.)?5 fee line item(s) extracted from the offering documents.Answered
Governance
  • Does the fund engage an independent auditor?Gap
  • Does the fund use a third-party fund administrator?Gap

Fee scheduletaken before LP distributions

Total load 9.75%
Fee
Trigger
Basis
Rate
% of AUM/Total Assets
1.75%
Origination Fee
0.00%

Service providers2 gaps

Legal Counsel
OK
Troutman Pepper Locke LLP
Not extracted — synthetic for demo
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
OK
No placement agent engaged
No placement agent engaged. Direct placement by Manager — no placement fees eat your invested capital.

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