Fees and Compensation
Management Fees
ACP Managers and their Affiliates receive management fees from ACP Funds and Accounts
(including Wrap Programs), which are typically based on a percentage of assets under management
(“Management Fees”). Management Fees are payable to the ACP Managers typically on a quarterly
basis and in arrears. The specific payment terms and other conditions of the Management Fees
available to the ACP Managers are set forth in the applicable Governing Documents, side-letters
and/or fee arrangements.
Management Fees are generally paid to the ACP Managers in one of two ways: by deducting such fees
from the applicable Account or directly billing the Account.
ACP Funds. For ACP Funds, in general, Management Fees range from 1.00% to 2.00% per annum
with lower fee percentages charged for capital commitments above a certain amount as specified in
the applicable Governing Documents, side letters and/or fee agreements.
ACP Funds to be privately offered in 2018 and their management fees are described below:
Private Equity Related ACP Funds:
ACP Secondary Fund II, LP
1.50% per annum on Net Asset Value
For Private Equity Related ACP Funds, there is also a performance incentive fee or
“back end” fee arrangement. Please see Performance-Based Compensation.
ACP INVESTMENT GROUP, LLC FORM ADV│MARCH 30, 2018
Credit Related ACP Funds:
ACP Credit Partners II, LP
1.50% per annum on Net Asset Value
For Credit Related ACP Funds, there is also a performance incentive fee or “back
end” fee arrangement. Please see Performance-Based Compensation.
Separately Managed Accounts. For SMAs, in general, Management Fees are as follows based on the
Account’s asset value:
Public Equity Related Portfolio Strategies:
ACP Quality Growth Portfolio Strategy
ACP Dividend Growth Portfolio Strategy
ACP Total Return Low Correlation Portfolio Strategy
1.50% per annum on the first $5 million
1.25% per annum on the next $45 million
0.95% per annum in excess of $50 million
Fixed Income Related Strategies:
ACP Fixed Income Total Return Portfolio Strategy
0.65% per annum on the first $5 million
0.55% per annum on the next $45 million
0.45% per annum in excess of $50 million
For SMAs, a discount Management Fee may be offered by ACP to Clients interested
in a performance incentive fee or “back end” fee arrangement. Please see Performance-
Based Compensation.
Passively Managed OCIO Accounts. When ACP provides passively managed investment services
as an outsourced chief investment officer (“OCIO”), in general, Management Fees are as follows
based on Account’s asset value; provided that our affiliated broker-dealer, NYPPEX divests the
Account’s assets within 5 years.
0.65% per annum on the first $50 million
0.55% per annum on the next $50 million
0.45% per annum in excess of $100 million
ACP INVESTMENT GROUP, LLC FORM ADV│MARCH 30, 2018
For passively managed accounts, a discount Management Fee may be offered by ACP
to Clients interested in a performance incentive fee or “back end” fee arrangement.
Please see Performance-Based Compensation.
Wrap-Programs. For Wrap-Programs, in general, Management Fees are as follows based on
Account’s asset value:
0.65% per annum on the first $5 million
0.55% per annum on the next $45 million
0.45% per annum in excess of $50 million
For Wrap-Programs, a discount Management Fee may be offered by ACP to Clients
interested in a performance incentive fee or “back end” fee arrangement. Please see
Performance-Based Compensation.
Performance-Based Compensation
ACP Managers and their Affiliates may also receive performance-based compensation (e.g. carried
interest or incentive fees) from ACP Funds, SMAs and Wrap Programs, which typically are based on
the level of returns achieved. Performance-based compensation is payable quarterly, semi-annually,
annually in arrears o r a s e a r n e d o n a deal-by-deal basis.
The specific payment terms and other conditions of the performance-based compensation available
to the ACP Managers are set forth in the Governing Documents, side letters and/or fee agreements.
Each Affiliate of the ACP Manager that serves as a general partner of an ACP Fund or as an
investment manager to SMAs or Wrap Programs is generally entitled to receive performance-based
compensation.
All performance-based compensation payable to the general partners or investment managers of an
Account will be consistent with the requirements of Section 205 of the Advisers Act and Rule 205-3
thereunder.
The general partner of each ACP Fund and investment manager to each Account whose strategy is
private equity, credit, real estate or public equity may receive performance-based incentive fees
(“Incentive Fees”). Incentive fees are generally calculated on an annual basis and take into account
net realized and unrealized capital appreciation of the net asset value of the applicable ACP Fund or
Account, subject to certain net loss carry-forward (known as a “high water mark”) and/or other
hurdle provisions (such as a preferred return) as set forth in the Governing Documents, side letters
and/or fee arrangements for each Account.
ACP INVESTMENT GROUP, LLC FORM ADV│MARCH 30, 2018
ACP Funds. For Private Equity Related ACP Funds and Credit Related ACP Funds, Incentive
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