ITEM 5. FEES AND COMPENSATION
For providing investment advisory services, Acis typically charges Clients a management fee
and/or performance fee or carried interest, and other fees as necessary and agreed to
(including, but not limited to, expenses related to servicing accounts, such as administration
and legal services).
Under appropriate circumstances and where permitted by applicable law, the terms of an
investment advisory contract, including fees, terms of payment and performance fees and
termination provisions, are negotiable. In negotiating fees, Acis considers various factors,
including assets under management, investment objectives, strategies and restrictions, and
the resources required to meet investment objectives.
Acis LP has entered into service agreements with Brigade Capital Management, L.P.,
(“Brigade”), pursuant to which Brigade will provide administrative, managerial and/or
advisory services to Acis LP on mutually agreed terms. Payments from Acis LP to Brigade
pursuant to the service agreements are funded solely by management fees of the respective
Client Accounts, except for permitted account expenses that are borne by the applicable
accounts.
Clients incur brokerage and other transaction costs associated with Acis’ management of
Client Accounts. Please see Item 12. Brokerage Practices of this ADV Part 2 for a discussion
of Acis’ brokerage practices.
FEE SCHEDULE
The following summary of fees is typically updated in this brochure annually (on or about
March 31) and does not reflect subsequent changes unless expressly indicated otherwise.
Fees in the below Fee Schedule are annualized.
Performance Fee
Management Fee or Carried Other Fees
Product Interest
From 0.40% to From 0.00% to
Structured Products None
0.50% 20.00%
STRUCTURED PRODUCT VEHICLES
As compensation for our advisory services, each Structured Product Vehicle pays Acis LP
management fees ranging from 0.40% to 0.50% annually. Management fees are based on the
principal balance of the assets held in the portfolio on defined determination dates.
Management fees are established during structuring and remain constant for the duration of
the life of the Structured Product Vehicle. Management fees also accrue during a payment
period.
In addition to management fees, performance fees, and brokerage and transaction costs,
investors in Structured Product Vehicles will indirectly bear the fees and expenses paid by
the Structured Product Vehicle, including administration, legal, audit and accounting fees,
and certain other fees and expenses. Each Structured Product Vehicle’s governing documents
include more detailed information about the fees and expenses paid by such Structured
Product Vehicle.
OTHER COMPENSATION
Client Accounts may hold significant positions, individually or collectively, directly or
indirectly, in the securities issued by a company. Accordingly, Acis or an affiliate may have
the right to appoint a board member or officer for such company. Acis or an affiliate may
appoint an employee or a third party to such position as it sees fit in the best interest of the
company and its Clients. Employees are permitted to retain all compensation received for
such positions except to the extent contrary to the governing documents for one or more Client
Accounts, in which case the proportion of such compensation related to such Client Account(s)
will be paid to those Account(s) (generally in proportion to relative assets of the Client
Account as of the date paid).
In addition, to the extent permitted by the offering and/or governing documents of the
applicable advised accounts, Acis and/or its affiliates may receive other fees for services
provided to portfolio companies, provided such fees are on arms-length terms and approved
by the Board of Directors or other governing body of the applicable portfolio company. See also