Indicative Term Sheet
Storeys Fund I
A $10M vehicle to acquire and professionally stabilize cash-flowing residential care facilities for the elderly (RCFE) and assisted living properties across Southern California, applying AI-driven operations to lift occupancy and margin.
Prepared for discussion purposes only. Terms below are current intentions of the Sponsor and remain subject to change, negotiation, and final legal documentation.
Fund Overview
| Fund Name | Storeys Fund I, LLC (to be formed) |
| Sponsor / General Partner | Storeys, LLC (an affiliate of Mangotec LLC), managed by Vineet Ravi |
| Structure | Single-purpose investment vehicle; anticipated to rely on Rule 506(c) of Regulation D (accredited investors only) |
| Strategy | Acquire, stabilize, and operate RCFE / senior living / assisted-living real estate in target markets, applying AI-driven operating tools to occupancy, staffing, and margin |
| Target Fund Size | $10,000,000 |
| Minimum Commitment | To be set at final close; anticipated range $50,000–$100,000 per investor (negotiable for early commitments) |
| Sponsor Co-Investment | $300,000 of Sponsor's own capital, alongside investors, on the same terms |
Investment Terms
| Investment Period | Anticipated 18–24 months from first close to deploy committed capital across the initial portfolio |
| Fund Term | Anticipated 5–7 years, with Sponsor extension options subject to LP approval |
| Target Returns | Indicative target only, not guaranteed: net IRR in the mid-teens and 1.6–2.0x net MOIC over the fund term, driven by cash flow plus exit/refinance |
| Distributions | Cash flow distributed quarterly after debt service and reserves; capital events distributed upon refinance or sale |
Fees & Economics
| Management Fee | Anticipated 1.5–2.0% per annum on committed capital during the investment period |
| Preferred Return (Hurdle) | Anticipated 8% cumulative, compounded annually, paid to LPs before any carried interest |
| Carried Interest (Promote) | Anticipated 20% of profits above the preferred return, subject to a GP catch-up |
| Distribution Waterfall | (1) Return of capital, (2) preferred return to LPs, (3) GP catch-up, (4) 80/20 LP/GP split thereafter |
| Acquisition / Disposition Fees | To be disclosed in full in final offering documents; none material to Sponsor economics beyond market-standard levels |
Governance & Reporting
| Reporting | Quarterly investor updates (financials, occupancy, operating KPIs) plus an annual audited/reviewed statement |
| Key Person | Vineet Ravi as key person to the Sponsor's strategy and operations |
| Investor Rights | Standard LP information and consent rights to be set out in the Operating/Limited Partnership Agreement |
| Closing Structure | Rolling closes anticipated as capital is committed, up to the $10M target |
Illustrative Example — Happy Path
To make the mechanics concrete, here is one hypothetical example based on a representative $2.3M acquisition of the type Fund I targets, assuming a favorable ("happy path") outcome: successful stabilization, no major surprises, and a healthy exit at Year 5. This is illustrative only — see the disclaimer below.
| Acquisition Price | $2,300,000 (all-in) |
| Financing (≈65% LTV) | $1,495,000 debt / $805,000 equity |
| Year 1 Cash Yield | ~6.0% on equity (stabilization ramp) — $48,300 |
| Year 2 Cash Yield | ~9.0% on equity — $72,450 |
| Year 3 Cash Yield | ~11.0% on equity — $88,550 |
| Years 4–5 Cash Yield | ~12.0% on equity — $96,600 each year |
| Year 5 Exit / Refinance | Hypothetical sale at ~$3,200,000; net proceeds to equity after debt payoff and costs ≈ $1,750,000 |
| Total Distributions (deal-level, gross) | ≈ $2,152,500 on $805,000 equity — roughly a 2.6x gross multiple, mid-to-high-20s% gross IRR over the 5-year hold, before fund-level fees and carry |
Translated to a $100,000 Fund I commitment, and simplifying the multi-tier waterfall for illustration (definitive documents will govern the actual mechanics):
| Gross Distributions (per $100,000 committed) | ≈ $260,000 (≈2.6x), if the Fund's overall portfolio performs in line with the example above |
| Est. Management Fee & Carried Interest | ≈ $50,000–$70,000 (1.75%/yr management fee plus 20% carry above the 8% preferred return) |
| Net to Investor (illustrative) | ≈ $190,000–$210,000 total, roughly a 1.9x–2.1x net multiple |
| Approx. Net IRR (5-year hold) | ≈ 14%–17%, before any taxes owed by the investor |
Hypothetical example — for illustration only. The scenario above is not a projection, forecast, or guarantee of any kind. It assumes a "happy path" / best-case outcome — successful stabilization, no unplanned capital expenditures, stable financing markets, and a favorable exit — and simplifies the Fund's actual fee and distribution waterfall mechanics. Actual results will vary, may differ materially from this example, and could result in partial or total loss of invested capital. Past performance of any Sponsor-affiliated asset or business is not indicative of future results. This example does not reflect, and Storeys makes no representation regarding, any tax consequences to an investor.
Please consult your own CPA and tax advisor to understand how an investment of this type would be treated for your specific tax situation, in addition to your own legal and financial advisors, before making any investment decision.
Confidentiality & Disclosures
Confidential. This document and its contents are confidential and are furnished solely for the use of the person to whom it has been provided, for the sole purpose of evaluating a potential investment in Storeys Fund I. It may not be reproduced or distributed, in whole or in part, to any other person.
Not an offer. Storeys, LLC and Storeys Fund I, LLC are in the process of being formed. No fund currently exists, no definitive offering documents have been prepared or delivered, and no securities are currently being offered or sold. Nothing in this document constitutes an offer to sell, or a solicitation of an offer to buy, any security, and no such offer or solicitation will be made except pursuant to definitive offering documents (including a private placement memorandum, subscription agreement, and limited partnership or operating agreement) to be prepared and delivered in connection with any actual offering.
Regulation D. Any future offering by Storeys Fund I is anticipated to be made in reliance on Rule 506(c) of Regulation D under the Securities Act of 1933, as amended, which permits general solicitation but requires the Sponsor to take reasonable steps to verify that each purchaser is an "accredited investor" as defined in Rule 501(a) of Regulation D before accepting any subscription. Securities offered under Rule 506(c), if any, will not be registered under the Securities Act or any state securities laws and will be subject to significant restrictions on transfer.
Forward-looking statements. Target fund size, minimum commitments, fee terms, target returns, timelines, and all other figures in this document reflect the Sponsor's current intentions, assumptions, and diligence estimates only. They are forward-looking in nature, are not guarantees of future performance, and are subject to change without notice. Actual terms will be set out in, and governed exclusively by, final offering and governing documents. Past performance of any Sponsor-affiliated business is not indicative of future results.
Risk of loss. An investment of the type described here involves a high degree of risk, including the risk of loss of the entire investment. Real estate and operating businesses (including senior care facilities) are subject to regulatory, market, financing, staffing, and liquidity risks. This document does not purport to be complete and is qualified in its entirety by, and should be read together with, definitive offering documents once available.
No legal, tax, or investment advice. This document is not intended to provide, and should not be relied upon for, legal, tax, accounting, or investment advice. Prospective investors should consult their own CPA/tax advisor, attorney, and financial advisor before making any investment decision.