About this video
Ellie tests every approval condition before an IC vote and finds the lender's final terms take the fund over its single-deal limit.
Full description
A San Francisco office tower, a vote on Tuesday and a memo that says every condition is met. Ellie tests each one: an approval condition caps the fund's equity at closing at $96.0m, and the memo shows $92.4m. But the lender's final terms require a $14.0m reserve at closing, so the fund actually puts in $106.4m, $10.4m over the limit.
Key points
- Each IC condition tested against the latest documents
- Final term sheet changes the equity at closing
- Caught before the vote, not after closing
Part ofAcquisitions & due diligence
Video details
- Roles
- Portfolio Manager, Investor / LP
- Processes
- Acquisitions, Risk & Compliance
- Geographies
- US
- Markets
- United States
- Tags
- author-demo-2, investment committee, approval conditions