Item 5: Fees and Compensation
Bloom Tree will generally receive a management fee in between .50% to 1.5% per annum paid monthly or
quarterly in advance as of the first business day of each calendar quarter based on the value of each
underlying investor’s account or Client’s portfolio value, typically adjusted during the quarter for any
contributions or withdrawals. Management fees may be waived at the discretion of Bloom Tree and the
general partner or board of directors of the Funds. Bloom Tree’s fee schedules for acting as investment
adviser vary depending on the type of account under management. In the case of a Separately Managed
Account or SPC, fees and expenses are defined and detailed in the investment management or subadvisory
agreement, respectively, and are subject to negotiation. The fees charged to any given Client may be higher
than fees charged to other Clients for advisory services to accounts of comparable size and investment
objectives.
Bloom Tree will deduct management fees and performance allocations from the Funds’ accounts pursuant
to authorization through the Administrator.
Separately Managed Accounts and SPCs have the option to pay Bloom Tree by receipt of an invoice or to
authorize fees to be paid to Bloom Tree by direct debit for management fee and performance fees.
Separately Managed Accounts and SPCs are billed monthly or quarterly in arrears or quarterly in advance.
If a Separately Managed Account terminates the investment management agreement the Firm will invoice
or credit the client for an amount that is pro-rated based on the number of days that the account was managed
by Bloom Tree. Terminations of subadvisory agreements including SPCs are handled pursuant to the terms
of the corresponding subadvisory agreement. Clients may also elect to have their fees calculated based
upon the market values calculated by their custodian or by Bloom Tree. Performance-based fees for
Separately Managed Accounts, if earned, are payable after the calculation period for such fees.
Bloom Tree is responsible for and pays or causes to be paid overhead expenses including the following:
office rent; furniture and fixtures; stationery; secretarial/internal administrative services; salaries; travel
expense; entertainment expenses; employee insurance and payroll taxes. All other expenses are paid by the
Funds and include: the Management Fee; Partnership legal, compliance (including but not limited to
Section 13, Section 16, short and long exposure and/or ownership filings with U.S. and foreign regulators,
AIFMD Annex IV, the AIFMD annual report, and Form PF filings), administrator (if applicable), audit and
accounting expenses (including third party accounting services); organizational expenses; investment
expenses such as commissions, research fees and expenses related to actual and potential investments;
interest on margin accounts and other indebtedness; borrowing charges on securities sold short; custodial
fees; bank service fees; Funds’ related insurance costs; Directors' fees and expenses; proxy voting service
fees; and any other expenses related to the purchase, sale or transmittal of Funds assets. Clients may also
incur certain charges imposed by custodians, prime brokers, and other third parties such as fees charged for
custodial and prime brokerage fees, wire transfer and electronic fund fees, and other fees on transactions.
Such charges, fees and commissions are exclusive of and in addition to Bloom Tree’s fee, and Bloom Tree
shall not receive any portion of these commissions, fees, and costs. Expenses attributable to a specific
series will only be borne by such series. Detailed information regarding the fees charged to the Funds is
provided in each Fund’s Confidential Private Placement Memorandum or other applicable governing
documents. Also, investors in our private fund clients who are associated with our firm, such as our officers
or employees, or their family members or friends, generally do not pay management fees or incur
performance fees though they do pay their pro rata share of our private fund clients’ operating costs. To
the extent that a Fund, SPC, or Separately Managed Account is invested in an exchange-traded fund or
mutual fund, the Fund, SPC, or Separately Managed Account will bear, along with other shareholders, it’s
pro rata portion of the exchange-traded fund’s or mutual fund’s management, trading, and administrative
fees and expenses. Separately Managed Accounts and SPCs typically incur all expenses in connection with
the transactions effected for their account including without limitation custodial fees, brokerage and
commissions, withholding or transfer taxes, interest on margin accounts and other indebtedness, and
borrowing charges on securities sold short.
The organizational expenses of the Funds (including expenses of the initial offer and sale of limited
partnership interests) are paid by the Funds and are, for net asset value purposes, being amortized over a
period of up to 60 months from the date the Fund commenced operations.
Expenses shared by each of the Clients are allocated pro rata based on the account value of each of the
respective Clients. If a Fund and one or more other Funds, or other Clients of Bloom Tree may be
responsible for some or all of a particular cost, Bloom Tree may allocate the cost among all those entities,
Clients, and Funds in its discretion in a fair and equitable manner. Expenses allocated to Clients including
Separately Managed Accounts and SPCs may be negotiated individually. At its discretion or pursuant to
the terms of an investment advisory agreement or private fund governing documents, Bloom Tree may pay
expenses that would otherwise be allocated to a Client. Clients that do not pay a portion of these expenses
may benefit from services paid for by other Clients or Bloom Tree.
Each Fund pays to Bloom Tree a quarterly management fee in advance. We generally do not permit
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