PivotPt Capital LLC | $1M Seed Round Underwriting Example · Page 7 of 8 · Confidential

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Underwriting Example: Deal #034 Walk-Through (Anonymized)

A real deal currently in Full UW, rendered through the platform’s end-to-end engine: 5-year annual pro forma, 15-scenario stress matrix, three-gate LOI framework, and a final synthesized recommendation. Deal identity is redacted; structure, math, and decision logic are real. The platform auto-generates a 14-page IC memo at IC stage with Claude-synthesized executive summary and LOI rationale.

Asking Price$8.4M48 keys · $175K/key entry

Entry Cap (Y1)8.1%On UW NOI, post-adversarial

LP IRR · Base15.8%5-yr hold · net to LP

LP MOIC · Base1.94x8% pref · 20% GP carry

Min DSCR1.20xY1 · rises to 1.65x by Y5

Annual Pro Forma · 5-Year Hold

Year	Revenue	NOI	Margin	DSCR	Lev. CF
Y1	$3.00M	$850K	28.3%	1.20x	$225K
Y2	$3.18M	$985K	31.0%	1.39x	$360K
Y3	$3.30M	$1.12M	33.9%	1.58x	$495K
Y4	$3.45M	$1.20M	34.8%	1.62x	$575K
Y5	$3.60M	$1.28M	35.6%	1.65x	$655K
5-Yr Total	$16.53M	$5.44M	+7.3pp ramp	1.20–1.65x	$2.31M

15-Scenario Stress Matrix · Pass / Warn / Fail

Scenario	LP IRR	MOIC	Min DSCR	Class
Base case	15.8%	1.94x	1.20x	PASS
Rate shock +200bps	13.1%	1.71x	1.05x	WARN
ADR −10%	12.4%	1.62x	1.04x	WARN
Occ −15pp	10.8%	1.48x	0.94x	FAIL
Labor +15%	13.7%	1.78x	1.11x	WARN
Expense factor 1.10	14.2%	1.82x	1.13x	WARN
Supply +8pp	13.4%	1.74x	1.08x	WARN
24-mo IO bridge	16.4%	2.01x	1.42x	PASS
Recession combo	9.1%	1.32x	0.81x	FAIL
15 Scenarios Total	9 pass	4 warn	2 fail	9 / 15

Three-Gate LOI Framework · Live Output

Gate 1 · Economics & Financial Pass

IRR 15.8% (hurdle ≥15.5%) · MOIC 1.94x (hurdle ≥1.83x) · DSCR 1.20x (hurdle ≥1.20x). All financial hurdles cleared at base case.

Gate 2 · Market & Operations Conditional

Brand fit Beco 72/100 PASS. Submarket Emerging (RevPAR +11.8% YoY). Conditional on NOI normalization — OM margin 34% vs STR median 27% (H2 flag).

Gate 3 · Structural & Legal Blocked

Deal-breaker: Septic system >25 yr, no inspection. Replace cost ~$185K not in seller pro forma. Must be inspected & either repriced or escrowed before LOI.

Synthesized Recommendation

Advance to LOI with Conditions

Deal clears Gate 1 unconditionally and Gate 2 with one open flag. Gate 3 blocker is curable; LOI to include (1) septic inspection contingency with $185K seller escrow or price reduction, (2) NOI re-underwrite at 27% margin not 34%, (3) ADR re-benchmark to peer comp set. Floating rate to be capped at base + 250bps.

From OM Upload to IC Memo in <72 Hours

The platform compresses what used to take an analyst 2–3 weeks into a 72-hour cycle: OM extraction, financial reconstruction, adversarial flag pass, 15-scenario stress, brand fit across 3 brands, and a 14-page IC memo with auto-synthesized executive summary. The output above is the platform’s final synthesized recommendation, not a human-written first draft.

Sources & Uses · Deal #034 Capital Stack

Sources	Amount	%	Uses	Amount	%
Senior debt · 65% LTV	$6.50M	62%	Acquisition price	$8.40M	80%
LP equity	$3.30M	32%	Brand conversion CapEx	$1.10M	11%
GP co-invest	$0.20M	2%	Closing costs & legal	$0.30M	3%
Working capital reserve	$0.45M	4%	Working capital reserve	$0.45M	4%
—	—	—	Financing & reserves	$0.20M	2%
Total Sources	$10.45M	100%	Total Uses	$10.45M	100%

Auto-Generated IC Memo · 14 Sections, Claude-Synthesized

14-Page IC Memo · Generated in 72 Hours Sections 1–14

01 Cover + deal metrics header

08 Staffing model + labor benchmarks

02 Executive summary (AI synthesis)

09 Cost structure + escalation

03 Thesis + STR market intel

10 Climate & insurance risk

04 OM reconstruction (adversarial)

11 Capital plan (CapEx schedule)

05 Monthly pro forma Y1–3

12 Exit UW + debt heatmaps

06 Annual pro forma + KPIs

13 Stress test panel (15 scenarios)

07 Revenue composition (rooms / F&B)

14 Flag register + LOI recommendation

PivotPt Capital LLC · $1M Seed Round · June 2026 Accredited Investors Only