Fund managers should audit their own documents before a dispute forces regulators or lawyers to do it. Check that distributions match your operating agreement's waterfall, marketing materials don't promise what you only target, all state filings are actually filed, and your PPM matches your operating agreement on splits and fees.
You don't need an investor dispute to run this checklist. Run it now while nothing is wrong. Everything an investor's attorney checks first is also something you can self-review. Pull your last 2 or 3 deals. Compare your distribution records to your Operating Agreement waterfall. Did every payment go out in the order the document specifies? Go back through your marketing materials for Promissory language. We make quarterly distributions reads very differently from we target quarterly distributions. Check whether every required state filing actually got made, not whether you think it did, whether you have the confirmation. And put your PPM and your operating agreement side by side. Do they say the same things regarding investor splits, waterfalls, and management fees? You need to know what's in your documents and in your files before anyone else asks. The full 4-item checklist, in the order an investor's attorney or a regulator actually runs it, is in the long form. The link's in the bio. Want to talk it through? Book a consultation. We'll tell you how we can help. That link's in the bio too.
