Item 5: Fees and Compensation
Each Client of Blackhorse, and each investor in the Fund, is either a “qualified purchaser” as defined in
Section 2(a)(1)(51)(A) of the Investment Company Act of 1940, or a non-United States person. The rate
of Blackhorse’s fees varies depending upon factors such as the type of account and the amount of assets
being managed. All advisory fees and compensation borne by a Client, and the specific manner of
calculating such fees and compensation, are set forth in detail in the advisory contract between such
Client and Blackhorse.
Blackhorse charges the Fund two types of fees. One is an asset-based fee based on the amount of
assets of the Fund (the “Management Fee”). Clients (other than The Blackhorse Emerging Enterprises
Master Fund) are also subject to a performance fee equal to a portion of each investor’s net profit (the
“Performance Fee”). No Performance Fee is charged on the recoupment of losses.
The fee structures below are Blackhorse’s standard fees for the Fund. The fees charged to any investor
in the Fund may be waived or reduced and is intended to be waived on investments made by
Blackhorse, its affiliates and their principals and employees.
The Blackhorse Emerging Enterprises Fund (“BEEF”)
1.00% per annum Management Fee, payable quarterly in arrears.
15% per annum Performance Fee, calculated annually subject to a high water mark.
The Management Fees and Performance Fees are generally deducted directly from the investor’s capital
account by the Fund’s administrator.
The amounts of fees charged to the Advisory Client were individually negotiated, based on Client-
specific factors. Blackhorse bills the Advisory Client separately for such fees, and the Advisory Client can
direct that the fees be deducted from its account or may choose to pay from a separate account. Fees
are assessed and paid quarterly. All fees are billed in arrears.
With respect to both the Fund and the Advisory Client, in addition to the fees stated above, there are
additional fees born by the Clients, such as legal and compliance expenses; administrative expenses;
external accounting, audit and tax preparation expenses, and organizational expenses. Clients may be
charged additional fees by their service providers, such as a fee from a bank to wire money.
In addition to paying investment management fees and, if applicable, performance-based fees, client
accounts will also be subject to other investment expenses such as custodial charges, brokerage fees,
commissions and related costs; interest expenses, research expenses (primarily through soft dollar
arrangements as further described in Item 12), taxes, duties and other governmental charges, transfer
and registration fees or similar expenses; costs associated with foreign exchange transactions, other
portfolio expenses; and costs, expenses and fees (including, investment advisory and other fees charged
by investment advisers with, or funds in, which the Client’s account invests; provided, however, that
where a Client’s assets are invested in a Fund managed by Blackhorse, the Client will not be charged two
layers of fees).
With respect to Funds that constitute a master-feeder structure, the feeder funds bear a pro rata share
of the expenses associated with the master fund. With respect to any client that is a commingled
Blackhorse Asset Management Pte. Ltd.
investment vehicle, provisions relating to fees and compensation are described in the applicable
commingled investment vehicle’s offering documents.
Blackhorse does not act in any capacity as a broker-dealer, and accordingly, Blackhorse does not receive
any compensation for acting as a broker-dealer. In addition, neither Blackhorse nor any of its supervised
persons accepts compensation for the sale of securities or other investment products, including
asset-based sales charges or service fees from the sale of mutual funds. For more information see Item
12, specifically Blackhorse’s soft dollar policy.
Blackhorse Asset Management Pte. Ltd.