Item 5 - Fees and Compensation
Management Fees
As the investment adviser to the Funds, we receive management fees at an annual rate of
0.43%. These management fees are deducted monthly in advance at a rate equal to 1/12th of
the management fee based on the balance of each Investor’s capital account as of the
beginning of such month and may be refundable if the advisory contract is cancelled prior to
the end of a payment period.
AltB may waive or modify the fee for certain Investors, including but not limited to Investors
that are members, employees or affiliates of AltB, or for certain large or strategic Investors.
Other Expenses
Each Fund will bear its own expenses including but not limited to, the management fee and
the performance fee for each Underlying Advisor, fees payable to the administrator, the
Fund’s legal, accounting, administrative expenses, auditing, tax preparation and other
professional expenses, directors and officers insurance, transaction expenses, filing fees and
expenses, custodial fees, bank services fees, the costs of printing and distributing periodic
and annual reports and statements, regulatory and compliance expenses of the Fund,
expenses paid to third-party vendors associated with the Fund’s internal accounting, interest
on any indebtedness and other borrowing charges and the costs of brokerage services;
research-related expenses, including, without limitation, news, quotation, statistics and
pricing services; hardware, software, data bases and other technical and telecommunications
services and equipment used in the investment management process; fees and travel
expenses in connection with investigating and monitoring potential and existing investments
(including fees paid to due diligence service providers); and order management and risk
management systems expenses and other expenses related to the investment decision and
monitoring process. The regulatory and compliance expenses borne by the Fund include the
costs of preparing and making any regulatory filings required to be made by AltB or any
affiliate thereof or any other costs associated with regulatory compliance obligations, related
AltB Partners, LP Form ADV Part 2A
software and other tools, blue sky expenses and compliance programs, in each case to the
extent such filings or similar obligations relate, directly or indirectly, to AltB’s management
of any of the foregoing entities or accounts (including Form PF, Form 13F, Form CPO-PQR,
Form CTA-PR, Treasury forms or other forms or filings required to be prepared and/or
filed under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), the
Commodities Exchange Act, the rules of the National Futures Association, the rules of any
central clearing organization or similar entity or any similar laws).
Each Fund will bear its pro rata share of the expenses of any asset-based fees paid to an
Underlying Advisor, which are generally a percentage of the Net Asset Value of such
Underlying Investment Vehicle. In addition, the Fund will generally bear its pro rata share of
any performance-based fees or allocations, as applicable, made to an Underlying Advisor or
an affiliate thereof, which are generally a substantial percentage of net appreciation of the
Fund’s investment therein.
If AltB incurs any of the expenses mentioned above on behalf of the Funds, then the Firm
will allocate such expenses among the Funds in proportion to the size of the investment
made by each in the activity or entity to which the expense relates, or in such other manner
as AltB considers fair and reasonable.
For a more detailed discussion of brokerage and transaction costs, Investors are directed to