Item 5: Fees and Compensation
The Firm receives compensation based on assets under management. The General Partners of the
Funds receive compensation based on performance.
The rate or amount at which fees and performance-based compensation are assessed, and the basis on
which such fees and compensation are calculated, vary across the Funds. The details are included in
each Fund’s Governing Documents. Investors should review all fees and compensation for the Firm
and General Partners to fully understand the total amount to be borne by a Fund and, indirectly, by
its Investors.
In general, pursuant to the terms of the applicable Governing Documents, the Funds pay the Firm a
management fee, on a quarterly basis in advance, of 0.50% per quarter (2.0% annually) on the adjusted
beginning value of an Investor’s capital account (before taking into account the performance-based
compensation, if any) for such fiscal quarter. The rate, however, is 0.25% per quarter (1.0% annually)
for BCM CI. The management fee will be prorated for any subscription, redemption or withdrawal
by an Investor that is effective other than as of the first day of a quarter. In the sole discretion of the
Firm, the management fee may be waived, reduced or calculated differently with respect to certain
Investors.
The performance-based compensation with respect to each Fund is described in the relevant
Governing Documents of each Fund, and varies from Fund to Fund pursuant to the terms of the
Governing Documents of each Fund. In general, Investors are subject to an incentive allocation of
20% (the “Incentive Allocation”) of the adjusted net capital appreciation allocated to an Investor’s
capital account for each fiscal year after deducting the management fee debited to such Investor’s
capital account. The performance-based compensation with respect to BCM CI, however, is
structured as carried interest (the “Carried Interest”) where 15% of distributions to an Investor that
are in excess of the Investor’s aggregate contributions are allocated to BCM CI’s General Partner.
Various exceptions to the calculation and terms of the performance-based compensation structures
exist, and are detailed in the relevant Governing Documents for each Fund. In the sole discretion of
each Fund’s General Partner, the Incentive Allocation and Carried Interest may be waived, reduced
or calculated differently with respect to certain Investors.
Each Fund bears all costs and expenses relating to the Funds’ activities, operations, and maintenance.
Such expenses include, but are not limited to, the management fees; investment expenses (including
brokerage costs and custodial fees); investment-related travel expenses; professional fees; legal
expenses relating to the Funds; external accounting and valuation expenses; administrator fees; audit
and tax preparation expenses; the cost of directors and officers insurance and errors and omissions
insurance; the cost of printing and mailing reports and notices; entity-level taxes; corporate licensing;
Fund related regulatory expenses; organizational expenses; expenses incurred in connection with the
offering and sale of the interests and other similar expenses related to the Funds; indemnification
expenses; and extraordinary expenses. Funds that invest in money market mutual funds, ETFs or
other registered investment companies will bear a proportionate share of the related fees and expenses
associated with such investments in addition to the fees and expenses paid to the Firm. Additional
detail regarding the Firm’s brokerage practices can be found in Item 12.