Item 5: Fees and Compensation
In consideration for the investment advisory services that 18North provides to its Client, 18North
is paid a management fee based on a percentage of the total assets of CNHF. The management fee
reimburses 18North for 18North’s administrative, personnel and operating expenses, including but
not limited to employees’ compensation, organizational, administrative, legal, operating and
extraordinary expenses as more fully described in each Client’s Governing Documents, and any
fees and expenses charged to 18North by any third-party for occupancy costs, technology costs
and other overhead expenses.
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18North Advisors LLC
Form ADV Part 2A: Firm Brochure
CNHF Services LLC (the “Servicer”) has been engaged by CNHF to act as the portfolio’s servicer.
The Servicer shall perform various portfolio servicing functions as instructed by CNHF as more
fully described in the Governing Documents. The Servicer and CNHF have entered into a service
agreement in connection with such services whereby CNHF pays the Servicer a percentage of its
gross assets monthly.
18North is the sole owner of the Class A Units of CNHF. The Class A Units represent a 20%
interest in CNHF. The receipt of these earnings is subordinate to the Preference Share Units as
more fully described in the Governing Documents.
Clients generally pay out of their assets all ordinary operating expenses, including, without
limitation, administration fees and expenses, and expenses associated with its management, audit,
accounting and legal services, insurance and reporting, certain start up and organizational
expenses, expenses incurred in the investigation, holding, purchase, sale or exchange of portfolio
investments or potential portfolio investments (whether or not ultimately consummated) and any
extraordinary expenses or indemnification obligations incurred by Clients, the Adviser or the
General Partner (other than as prohibited by ERISA or other applicable laws) as more fully
described in each Client’s Governing Documents.
CNHF may also pay certain operating expenses of 18North as more fully described in CNHF’s
Governing Documents.