ITEM 5. FEES AND COMPENSATION
A. Fees
Alchemy will charge a fee to each Client that is based on a percentage of assets under management (the
“Management Fee”). Investors in the Clients will generally pay a monthly or quarterly or annual
Management Fee (approximately 0.5% to 2.5% annually). The Management Fee is generally accrued as of
the last day of each month and paid quarterly in arrears. The applicable Management Fee schedule for each
Client or investor is described in the applicable Governing Documents. Each Fund’s board of directors, in
consultation with Alchemy, may elect to reduce, waive or calculate differently the Management Fee with
respect to such Fund or investor.
Management Fees charged on Managed Accounts, if any, will be negotiated separately at the time of the
applicable accounts’ opening and may be higher or lower than the Management Fee charged to investors in
the Funds.
In addition to the Management Fee, investors in the Funds are typically subject to an initial subscription fee
(“Subscription Fee”), payable at the time of investment to Alchemy. The Subscription Fee typically ranges
between 1.5% and 3.0% of the amount of the initial subscription, thus reducing the amount actually invested
by an investor. Each Fund’s board of directors, in consultation with Alchemy, may elect to reduce, waive
or calculate differently the Subscription Fee with respect to such Fund or investor.
The Firm also receives an incentive fee or performance fee (“Incentive Fee”) as discussed further in Item
6.
B. Charging Fees
Depending on the terms specified within each Client’s Governing Documents. Clients shall be billed
directly for all fees incurred.
The Subscription Fee is typically charged to each Fund investor prior to the acceptance of such investor's
subscription (including subsequent subscriptions) and will thus reduce the amount actually invested by the
investor in the Fund.
C. Other Fees and Expenses
In addition to the Management Fee, Subscription Fee and Incentive Fee, each Fund will bear its own
organization and initial offering expenses, including, but not limited to, legal and accounting fees, printing
and mailing expenses and government filing fees, and other expenses of a capital nature. In addition, the
Funds typically pay or reimburse the Firm or its affiliates for (i) all expenses incurred in connection with
the offering, including, but not limited to, travel, legal/compliance, and printing of any applicable
Governing Documents; (ii) all operating expenses of the Funds such as tax preparation fees, governmental
fees and taxes, compliance costs, Fund administrator fees, director fees and expenses, costs of
communications with shareholders and investor relations, and ongoing legal, accounting, auditing,
bookkeeping, consulting and other professional fees and expenses; (iii) all Fund research, trading and
investment related costs and expenses (e.g., research reports, due diligence on portfolio companies,
brokerage commissions, margin interest, expenses related to short sales, custodial fees and clearing and
settlement charges), including the costs of calculating and complying with any applicable debt limits to
invest in listed securities in India; and (iv) all fees and other expenses incurred in connection with the
investigation, prosecution or defense of any claims, assertion of rights or pursuit of
remedies, by or against the Funds, including, without limitation, professional and other advisory and
consulting expenses and travel expenses, and whether or not pursuant to bankruptcy or other legal
proceedings, or participation in informal committees of creditors or other security holders of an issuer.
Additionally, any Fund that is a part of a master-feeder structure will also have to bear its share of pro- rated
expenses of its master funds.
Please refer to the relevant Fund’s Governing Documents for a complete understanding of each Fund’s
fees and expenses. The information contained herein is a summary only and is qualified in its entirety by
the relevant Fund’s Governing Documents.
Expenses charged on the Managed Accounts would be negotiated separately at the time of executing the
Governing Documents.
D. Timing of Fee Payments
As described above, Management Fees are generally paid quarterly in arrears. Accounts initiated or
terminated during the relevant periods will be charged a pro-rated Management Fee.
As detailed above, the Subscription Fee is charged to investors at the time of subscription.
E. Payments to Supervised Persons
Neither Alchemy nor any of its supervised persons will accept compensation for the sale of securities or
other investment products.