Item 5 – Fees and Compensation
aAFL’s advisory fees are negotiable, and generally vary depending on the services being provided according
to the schedule agreed to by the client and included in their investment management agreement. Fee
arrangements will vary by client, and are based on a number of different factors, including investment mandate,
services performed, and account size. Fees and allocations may be fixed, fixed plus performance or
performance only. Please refer to Item 6 of this Brochure for additional information about performance-based
fees. Generally, fees are paid monthly or quarterly in arrears based on account balances at the close of each
month, quarter or the average of the month-ends within a quarter, or in advance based on assets outstanding at
the end of prior month or quarter, pursuant to the prospectus, investment management agreement or other
relevant offering document for the vehicle. We will either invoice clients for these fees, or in certain situations
deduct these fees from the client’s custody account. In some instances, fee schedules are negotiable and can
vary depending on a variety of factors such as the client, size of the account, and the investment strategy
selected.
We will not generally be required to provide notice to, or obtain the consent of, one client when waiving,
reducing or varying fees or modifying other contractual terms with any other client. However, some clients
may from time to time seek to negotiate most favored nation (“MFN”) clauses in their investment management
agreements with abrdn. These clauses may require us to notify the MFN client if we subsequently enter into
an investment management agreement with another client that offers more favorable pricing or other
contractual terms than those currently offered to the MFN client. The applicability of an MFN clause will
depend on the degree of similarity between clients, including the type of client, the scope of investment
discretion, reporting and other servicing requirements, the amount of assets under management, the fee
structure and the particular investment strategy (and therefore the relevant investment adviser) selected by each
client. We have sole discretion over whether or not to grant any MFN clause in all circumstances
All advisory arrangements may be terminated by either party upon prior written notice, according to the
termination provisions outlined in the investment management agreement. If a contract is terminated, all
advisory fees are subject to a pro-rata adjustment based upon the date of termination. Upon termination of the
agreement, any prepaid, unearned fee will be promptly refunded, and any earned, unpaid fees will be due and
payable.
U.S. Private Funds and Non-U.S. Private Funds
As an investment manager to private funds, we may charge advisory fees based upon: (a) the net asset value
of the account at the end of each billing period (i.e. AUM fees), (b) the unrealized or realized gain of the
accounts during the billing or other specific period (i.e. a performance fee), or (c) any combination of (a) and
(b). Billing periods will be monthly or quarterly with fees generally being paid in arrears. Advisory and all
other fees are fully disclosed in the offering documents of the fund.
Private funds may gain exposure to asset classes through investments in underlying portfolios managed by
aAFL or its affiliates, subject to any regulatory restrictions applicable to particular client types, such as mutual
funds or ERISA accounts. We have implemented controls to prevent the double-charging of advisory fees.
aAFL will cause the account to pay brokerage, spreads, and other transaction costs. Other common costs
include legal, auditing, and custody. The amount and timing of these fees will vary according to, among other
things, strategy and investment structure. In all instances, costs which are controlled by aAFL and paid by
clients are considered in light of our duties under the relevant regulatory authority (e.g. FCA), including our
duty to seek best execution.
Private Market Funds
Investors and prospective investors should review the confidential private placement memorandum, limited
partnership agreement and other governing documents (collectively, the “Governing Documents”) of each
Private Market Fund in conjunction with this brochure for complete information on the fees and compensation
payable with respect to that particular Private Market Fund. “Private Market Funds” include private equity,
venture capital and real assets fund of funds, as well as Private Credit,. Different Private Market Funds and
advisory accounts may be subject to different management fees and performance-based compensation
arrangements. In certain circumstances, the advisory fees payable to aAFL by individual investors are
negotiable and waived for certain investors. Investors and prospective investors in each Private Market Fund
should note that similar advisory services may (or may not) be available from other investment advisers for
similar or lower fees.
Fees charged by aAFL to investment advisory clients vary from client to client depending on the type, size and
complexity of the client account. In general, such fees may include a management fee (which is generally
calculated as a percentage of the notional value of the or client commitment) and/or a performance-based
compensation arrangement.
aAFL is authorized under the Governing Documents to charge and deduct advisory fees directly from the
assets of the Private Market Funds. Payments of advisory fees are generally made quarterly in advance and in
accordance with the terms set forth in the Governing Documents. Please refer to the Governing Documents of
each of the Private Market Funds for complete information on the timing of advisory fee payments.
aAFL will typically charge and deduct advisory fees directly from its s investment advisory clients pursuant
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