ITEM 5 – FEES AND COMPENSATION
Aristotle is compensated by Advisory Clients in the form of management fees (“Management
Fees”) and performance-based allocations (“Incentive Allocations”). As of January 1, 2019
Aristotle voluntarily reduced its management fee for the Fund from 1.0% to 0.50% so long as the
Fund's portfolio consists of greater than 50% in U.S. Treasury securities. The voluntary
reduction will terminate upon the Fund's portfolio consisting of less than 50% in US Treasury
securities. Management fees for the Fund are generally calculated and paid quarterly in
advance and are n o r m a l l y equal to 1.0% of the Fund’s assets under management, and paid
by the Fund to Aristotle. Incentive Allocations for the Fund generally equal 20% of the net profits
as of the end of the Fund’s fiscal year, subject to a high water mark limitation, which generally
provides that to the extent the Fund incurs net losses as of the end of any year the affected Fund
Investors will not bear an incentive allocation on net profits earned in subsequent years unless
100% of the net losses carried forward from prior years has been recouped. The fee
arrangements for the SMAs are individually negotiated, and are generally based on assets under
management and include performance-based fees.
In general and if applicable, Aristotle refunds the unearned portion of any pre-paid management
fee if a withdrawal is made from the Fund before the end of a billing period. Aristotle
generally determines the amount of the relevant refund on a pro rata basis, based upon the
portion of the relevant period during which it provided services.
Advisory Clients will incur brokerage and other transaction costs. SMA Clients may negotiate
expense coverage but typically incur costs similar to those of the Fund. The Fund will also bear
applicable expenses, including, but not limited to: legal, audit, accounting and tax preparation;
fees and expenses of the Fund, fees and expenses of any administrator, regulatory and
compliance expenses directly related to the Fund, all investment expenses, including but not
limited to commissions, research fees, transfer and withholding taxes, stamp duties, corporate
actions, interest on margin accounts and other indebtedness, borrowing charges on securities sold
short, custodial fees, bank service fees, computer software, licensing, programming and
operating expenses, fees or expenses associated with insuring the Fund’s assets and the General
Partner, its principals, officers, and employees with respect to services performed on behalf of
the Fund, expenses in connection with the offering of interests (including, without limitation, the
costs of printing and distributing offering materials, subscription materials, reports and notices
and governmental and self-regulatory agency filing fees, costs, and expenses), taxes imposed on
the Fund as determined by the General Partner, costs and expenses incurred by the General
Partner (or its designee) in its capacity as “tax matters partner” or “partnership representative”,
indemnification expenses and other extraordinary expenses, and any other reasonable expenses
necessary to conduct and perform the operation of the Fund as determined by the General
Partner. Please see Item 12, Brokerage Practices for further information.
IT IS CRITICAL THAT FUND INVESTORS REFER TO THE RELEVANT OFFERING
AND FUND GOVERNING DOCUMENTS FOR A COMPLETE UNDERSTANDING OF
APPLICABLE FEES AND EXPENSES. THE INFORMATION CONTAINED HEREIN
IS A SUMMARY ONLY AND IS QUALIFIED IN ITS ENTIRETY BY SUCH
DOCUMENTS.