This Due Diligence checklist (☐) is designed to guide investor discussions with sponsors of an income oriented investment offering. Use it to evaluate sponsor credibility, alignment, income stability, and risk management practices.

Sponsor Background & Alignment

1 ☐ What is your firm’s performance history with prior income-oriented offerings (projections vs. actuals)?

2 ☐ How much of your own capital do you (and affiliates) have invested in this offering?

3 ☐ How are you compensated (fees, promotes, carried interest)?

Do these align with delivering consistent income to investors?

Income Sources & Stability

4 ☐ What assets or activities directly generate the distributions (rents, loans, royalties, receivables, etc.)?

5 ☐ Who are the obligors/tenants/borrowers, what are their credit qualities or financial health and what collateral or guarantees back their obligations?

6 ☐ How diversified are the income streams by sector, geography, and counterparty?

Risk & Downside Protection

7 ☐ How would distributions be impacted under downside scenarios (vacancy, default, rate hikes, economic slowdown)?

8 ☐ What redemption, buyback, or secondary market options exist if I need early liquidity?

9 ☐ How do current conditions (interest rates, credit spreads, cap rates) affect your income projections?

Oversight & Transparency

10 ☐ What is your DCR ratio, and are distributions solely from cash flow, or is there any return of capital included?

11 ☐ What level of reporting, third-party audits of all and related entities or independent verification do investors receive?

12 ☐ Have you experienced any delays, defaults, restructuring, or regulatory issues in prior income offerings?