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MCI Income Fund V, LLC

Sponsored by Megatel Capital Investment·

Unknown· LLC · 2 classes· ● Low· PPM v1· Updated 26d ago
3 data notes▶
Unusual structureUnscored: absolute lp takeUnscored: pref quality
Run the numbers
Composite
58.3
median 35 +23
Pref Returnⓘ
—
—
LP Take (Base)ⓘ
—
median 42.6% · Other / Specialty
GP Commitⓘ
0.0%
median 0.0% +0.0%
Min Investment
$10K
ticket size
Offering Size
$50M
target raise
Cascade · Distributions

Where each dollar goes

$875K
LP $875K · Fees $0 · GP $0
GROSS PROCEEDS$875KLPT1Return of Capital$500,000 · 57.1% of grossLPGPT4Residual Split (100% / 0%) · 42.9%Limited Partners · $375KGeneral Partner · $0pool fully distributed
Standard scenario · $500K equity · 5y hold · 1.75× exitRun your own cascade →
Class structure · 2 classes

How MCI Income Fund V, LLC divides the cap table

The cascade above models the blended LP view. Click a class below to view per-class economics.

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 — Identity of the Company's member (Megatel Capital Investments, LLC vs. MCI Holdings, LLC)

High

The offering circular body identifies the Manager/sole member as Megatel Capital Investments, LLC holding a 100% membership interest, but the audited financial-statement notes state the common (sole) member is MCI Holdings, LLC — a contradiction about who owns and controls the Company.

“The common member of the Company is MCI Holdings, LLC. The common member of the Company is responsible for all management and decisions of the Company.”
PPM p.7082% confidence

Numeric inconsistency — Interest payment frequency (quarterly vs. monthly)

High

The cover and Description of Bonds state interest is paid quarterly in arrears (Jan/Apr/Jul/Oct 25th), but the Summary 'Interest Payments' section says interest is paid monthly until maturity — directly conflicting payment frequencies for the same Bonds.

“payable to the record holders of the Bonds quarterly in arrears on January 25th, April 25th, July 25th and October 25th of each year ... [vs] Commencing on the 15 th day of the month, or the next business day, if the 15 th is a weekend or a holiday, following the issuance of such Bond and continuing monthly until its maturity date.”
PPM p.190% confidence

Document-quality defect — Offering termination/extension terms (June 30, 2022 + two six-month periods vs. second anniversary + one additional year)

Medium

The cover states the offering terminates on June 30, 2022 with a right to extend for two consecutive six-month periods, while the Summary states it terminates on the second anniversary of qualification with a right to extend for one additional year — inconsistent termination and extension mechanics.

“terminate the offering on June 30, 2022 ... our Manager has the right to extend this offering beyond June 30, 2022 for two consecutive six-month periods. ... [vs] (ii) the second anniversary of the date of qualification of this offering statement ... we have the right to extend this offering beyond the second anniversary of the date of qualification for an additional year.”
PPM p.280% confidence

Numeric inconsistency — 365-day year consisting of twelve 30-day months

Medium

The Description of Bonds day-count basis is internally contradictory: a 365-day year cannot consist of twelve 30-day months (twelve 30-day months equals 360 days), so the stated interest-accrual convention is impossible.

“Interest will accrue and be paid on the basis of a 365-day year consisting of twelve 30-day months.”
PPM p.5785% confidence

Numeric inconsistency — Closing dates (first and third Thursday vs. the 20th of each month)

Medium

The Summary and How-to-Invest sections say closings occur on the first and third Thursday of each month, while the Plan of Distribution says closings occur on the 20th of each month — conflicting closing-date mechanics.

“Our company will conduct closings in this offering on the first and third Thursday of each month or the 'closing dates,' ... [vs] We will conduct closings on the 20th of each month or, if the 20th is not a business day, the next succeeding business day”
PPM p.588% confidence

Spelling / typo — The Word Health Organization

Info

Financial-statement note misspells 'World Health Organization' as 'The Word Health Organization' in substantive disclosure text.

“The Word Health Organization has declared COVID-19 to constitute a 'Public Health Emergency of International Concern' and characterized COVID-19 as a pandemic.”
PPM p.7095% 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: 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 distribution-waterfall structure does the fund use?

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 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 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.

38%
Coverage
5 answered0 partial8 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?Gap
  • What is the fund's investment strategy / asset class?UnknownAnswered
  • What is the fund's vintage year?Vintage 2021.Answered
  • What is the target offering size?Target offering of $50,000,000.Answered
  • What is the minimum LP investment?Minimum investment of $10,000.Answered
Fees & Expenses
  • Is the fund's fee schedule disclosed (management fee, etc.)?6 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
Generate IC memo →

Fee scheduletaken before LP distributions

Total load 11.00%
Fee
Trigger
Basis
Rate
Selling Commission
Bond sale closing
6.00% of gross offering proceeds on sale of Class A Bonds only; no selling commissions on Class B Bonds
6.00%
Managing Broker-Dealer Fee
Bond sale closing
Up to 0.50% of gross offering proceeds; applies to both Class A and Class B Bonds
0.50%
Wholesaling Fee
Bond sale closing (at manager discretion)
Up to 1.50% of gross offering proceeds from certain sales of the Bonds
1.50%
Nonaccountable Expense Reimbursement
Bond sale closing
Up to 1.00% of gross offering proceeds on the sale of Class A Bonds; may also apply to Class B Bond sales
1.00%
Organization and Offering Fee (O&O Fee)
Offering proceeds raised
2.00% of gross offering proceeds; Manager pays actual O&O expenses from this fee and retains any excess as compensation
2.00%
Accountable Expense Reimbursement
Ongoing operations
Reimbursement of documented expenses incurred by Manager and affiliates on behalf of the Company; paid monthly; amount indeterminable
0.00%

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
OK
No placement agent engaged
No placement agent engaged. Direct placement by Manager — no placement fees eat your invested capital.

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