WIREFRAME · non-functional design mockup · Multi-Family Office direct co-investment DD · static illustrative data (Project Atlas)
Claim-credibility score. $24M overpayment at the sponsor's price.
$48,000,000
Co-investment ask · EV $520M · 13.7×
Six adversarial checks
Earnings Flag
Adj. EBITDA: $14.2M of $38M is owner add-backs, non-recurring items & unrealized synergies
−$14.2M EBITDA
Valuation Reject
13.7× claimed → 21.8× on supported EBITDA; sector ~11×; valuation sponsor-commissioned
−$258M EV
Contracts Reject
"$40M binding anchor contract" is an unsigned, terminable LOI; top customer 38%
−$40M revenue
Track record Flag
Fund II "2.8×" is gross / pre-write-off; net DPI ~1.4×; a reference is a related party
~2× overstated
Conflicts & Fees Reject
Undisclosed 2% placement fee + 50bps trail to the MFO; deck says "no adviser fees"
$960K undisclosed
Structure Reject
SPV gives the sponsor sole distribution control; undisclosed prior-fund litigation; circular related-party flow
control + litigation
Cards reveal in sequence during the demo. Green = pass · Amber = flag (re-price / negotiate) · Red = reject. Each amount is traceable (see audit drawer).
Exception report
| Item | Check | Finding | Claimed | Supported | Delta | Source |
|---|
| 1 | Earnings | Adjusted EBITDA: $14.2M of $38.0M is owner/mgmt add-backs as recurring, a one-off contract gain & unrealized run-rate synergies | $38.0M | $23.8M | $14.2M | QoE · workpapers |
| 2 | Valuation | EV $520M = 13.7× claimed → 21.8× on supported EBITDA; sector ~11×; the "independent" valuation was sponsor-commissioned | $520M | $262M | $258M | comps · engagement letter |
| 3 | Contracts | The "$40M binding anchor contract" the growth case rests on is an unsigned LOI, terminable at will; top customer = 38% of revenue | $40.0M | $0 | $40.0M | data room · the LOI |
| 4 | Track record | Fund II "2.8×" is gross, pre-write-off; net DPI ~1.4×; 1 of 3 references is a related party (portfolio-co exec) | 2.8× | 1.4× | ~2× over | ref calls · cap accounts |
| 5 | Conflicts | Sponsor pays the MFO a 2% placement fee + 50bps trail on the families' capital, undisclosed; deck states "no adviser fees" | $0 | $960K | $960K* | side letter · FinSA |
| 6 | Structure | Co-invest SPV gives the sponsor sole distribution control + a 1.5% SPV fee; undisclosed prior-fund litigation; circular related-party flow | — | — | disqualifying | SPV LPA · litigation |
| Re-underwrite: $48M co-invest buys ~$24M defensible value at the sponsor's price · undisclosed $960K placement fee · recommend | commit $0 | *+50bps trail · DO NOT PROCEED |
Recommended position
Export IC diligence memo (PDF)
Push to approved-list / reporting platform (stub)
Accept / override flags
Audit drawer (on click): Source = the data-room "anchor contract" → it is an unsigned LOI, terminable at will — not the $40M binding contract the growth case (and the 13.7× price) rests on. With $14.2M of unsupported EBITDA and a sponsor-commissioned valuation, the $520M EV is unsupported; a market re-underwrite is ~$262M. Recommendation: DO NOT PROCEED at these terms. Fiduciary note: the sponsor pays the MFO an undisclosed 2% placement fee + 50bps trail on the families' capital (Swiss retrocession rule — it belongs to the client); committing would put six families into an over-priced deal the MFO is being paid to place.
Sponsor-claim verification
$24M
overpayment at the sponsor's price — the $48M co-invest buys ~$24M of defensible value · 6 client families at stake
Bars = sponsor-claim categories (Earnings · Valuation · Contracts · Track record · Conflicts · Structure) · amber = unverified or contradicted · DD-time view, not a portfolio report.
Mockup only — illustrative figures, no live engine. Final figures come from the six-check adversarial deal engine per DESIGN-multi-family-office-coinvestment-dd-verification.md. Anchor: the adversarial engine that returned 7/100 on Olympus Greenport — the same engine, pointed at a manager, is the Madoff / JES catch.