EquityMultiple

EMIP 27 LLC (Persimmon at Cates Creek) PPM ingested from full 141-page investor packet. Eighth EquityMultiple PPM reviewed in the AltStreet dataset. First single-asset EMIP SPV documented in detail - distinct from EMIP 24 (feeder into Accretiv Hybrid Fund 2) and EMIP 26 (5-tier Hillsborough Mezz structure). Currently raising; initial closing targeted June 30, 2026 with subsequent closings 6 months or longer at Managing Member discretion.

The EMIP series is not structurally homogeneous. The existing review framing assumed an EMIP fee template (1% EM Manager + 1.5% sponsor fund + acquisition/disposition/carry) generalizable across vehicles. EMIP 27 demonstrates this is incorrect. EMIP 27 is a single-asset SPV with no Accretiv-equivalent third-party sponsor fund and no 5-tier Hillsborough Mezz waterfall. Its three-layer EM economics architecture (Annual Service Fee with fee-on-fee mechanic, PI Units profits-interest equity, JV-level carry passthrough) differs materially from EMIP 24's EM-plus-Accretiv double-layer and EMIP 26's mezz-stack pattern. Investors evaluating any EMIP vehicle should read that specific offering's PPM rather than extrapolating from a different EMIP number. The 'EMIP series' label conveys vintage and sponsorship but not fee architecture. Structures

EMIP 27 Operating Agreement Section 5.03 explicitly states the 1.00% Annual Service Fee is charged 'per annum of the aggregate Capital Contributions made by the Investor Members (regardless of whether any such Capital Contributions are returned to the Investor Members pursuant to Section 6.03 or otherwise).' This is a fee-on-fee mechanic - the management fee continues at the original Capital Contribution level even after partial or full capital return. Over a 31-month hold with potential capital returns during the construction-completion period, this can produce a materially higher effective management fee than a NAV-based or post-return-adjusted basis would suggest. The mechanic is documented in EMIP 27 verbatim; whether it appears in identical form in EMIP 24 or EMIP 26 is worth confirming on the next ingestion pass. Fees

The $50,000 acquisition fee in EMIP 27 is described as 'waived' in the investor-facing fee schedule but is converted to PI Units issued to EM Participation1, LLC (an EM affiliate) as a Rev. Proc. 93-27 profits-interest equity stake. The PI Unit Holder receives a distributive share of Company income, gains, and distributions pari passu with Investor Members based on a Deemed Capital Contribution Amount of $50,000 - but also receives priority Tax Distributions that Investor Members do not receive. Mechanically, the 'waived' acquisition fee is captured by EM through profits-interest equity with asymmetric tax cash flow rights. Investors reading the product page see 'acquisition fee waived' without seeing the conversion mechanism. This is a structural finding worth highlighting because it generalizes the existing review's thesis on disclosure hierarchy: a fee marked as waived can be economically captured through alternative structures disclosed elsewhere in the Operating Agreement. Fees

EMIP 27 includes a third layer of EquityMultiple economics beyond the Annual Service Fee and PI Units: the JV Entity waterfall returns 100% pari passu to JV members up to return of principal and an 8% preferred return, then splits 80% to JV members / 20% to JV Partner as carried interest. The PPM discloses that 'An EM Affiliate is entitled to a percentage of the JV Partner's carried interest.' The specific percentage of the 20% JV-level carry that flows to the EM Affiliate is not disclosed in the materials reviewed. This is structurally important: even if an investor models EMIP 27 economics from the Annual Service Fee and PI Units alone, they will miss a third EM economic layer one level below the EMIP 27 vehicle. The fee surface is not visible from the product page or from any single document in isolation. Structures

EMIP 27 Operating Agreement Section 12.01 contains a full fiduciary duty waiver, captured verbatim: when the Managing Member is permitted to make a decision in its 'sole discretion,' the Managing Member 'shall be entitled to consider such interests and factors as it desires, including its own interests, and shall, to the fullest extent permitted by applicable law, have no duty or obligation to give any consideration to any interest of or factors affecting the Company or the Members.' Section 5.04 further provides that Managing Member removal requires a 'Supermajority of Members' and is permitted only 'for Cause.' Investor Members are deemed to have waived claims related to conflicts of interest by purchasing Units. The governance posture is consistent with institutional private-fund norms but is at the more manager-favorable end of the range, and should be modeled into the investor's view of distribution timing, exit timing, and amendment-by-discretion risk over the 31-month hold. Regulation

EMIP 27 contains an explicit tax distribution asymmetry: Section 6.03 carve-out provides priority Tax Distributions to the PI Unit Holder (EM Participation1, LLC) to enable the PI Unit Holder or its beneficial owners to pay assumed taxes on allocated income. Investor Members are not entitled to Tax Distributions under any provision in the materials reviewed. The mechanical implication: an Investor Member receiving K-1 allocations of taxable income from EMIP 27 may owe taxes on that income without receiving corresponding cash distributions, while the EM affiliate holding PI Units is contractually protected from the same phantom-income risk. This is a meaningful tax structuring asymmetry that does not appear on the EMIP 27 product page or in the investor-facing fee schedule. Tax

EMIP 27 is a pre-construction development deal - material to the risk profile. The 346-unit / 570-bed Persimmon at Cates Creek project is sponsored by Larson Capital with First Horizon Bank construction financing. The PPM models a 29-month construction timeline with first deliveries Q2 2027, lease-up through month 36, and sponsor exit at month 36 via sale assuming a 5.5% exit cap rate / $383K per unit / $133M exit value. EM invests at month 5 of construction with a 31-month anticipated remaining hold. Construction-cost inflation, interest-rate risk on the SOFR+585bps construction loan, and lease-up risk during the post-delivery 12-month stabilization window all sit between EM's entry point and the projected exit. The 23.4% net IRR / 1.7x target should be modeled against these execution risks rather than treated as a baseline expectation.

Standard EquityMultiple governance template confirmed for EMIP 27, consistent with the prior EMIP 24 and EMIP 26 reviews: no independent audit disclosed, no independent third-party administrator disclosed, Investment Amount and Minimum Investment subject to Managing Member discretion, hold period subject to Managing Member discretion, distributions at sole and absolute discretion, transfer restrictions at Manager sole discretion, conflicts waived by Investor Members upon purchase, Manager amendment authority for 'no material adverse effect' matters (subjective standard). The pattern is reliable enough across the EMIP series to treat as the EquityMultiple baseline governance template; the deviation is the fee architecture, not the governance template. Regulation