Fees and Compensation — Form ADV Part 2A (3/18/2022)
[Brochure]
Item 5 - Fees and Compensation
A. Below is a discussion of how the Adviser is compensated in connection with
providing advisory services to its Clients. The Adviser may enter into different fee
arrangements on a Client by Client basis.
Management Fees. The fees and expenses associated with each Client account will
be negotiated with each Client and are described in detail in each Client’s Offering
Documents. Generally, the Adviser will be entitled to a management fee (the
“Management Fee”) in the amount determined based on its total amount of expenses
in the preceding year.
Performance Allocation. The Adviser is entitled to an annual performance-based profit
allocation which is generally equal to sixteen percent (16%), based on net profits (the
“Performance Allocation”). The Performance Allocation percentage may be higher
than 16% depending on certain performance markers as more fully discussed in the
applicable investment advisory agreement.
Direct Client Expenses. Clients are responsible for all direct expenses related to their
operations and activities, including all of its expenses associated with its investment
portfolio, including brokerage commissions and other transaction costs. Clients bear
the full cost of expenses related to proxies, underwriting and private placements,
brokerage commissions, interest on debit balances or borrowings, custody fees and
any withholding or transfer taxes imposed on the Fund.
B. The Management Fees and Performance Allocations are billed to the Clients. The
Management Fees are typically billed monthly. The Performance Allocation is
typically billed annually.
C. Clients will incur brokerage and other transaction costs. Item 12 of this brochure
discusses how the Adviser selects brokers and determines the reasonableness of their
compensation. The expenses borne by each Client are described in more full detail
in each Client’s Offering Documents.
D. None of the Adviser’s fees are billed to its Clients in advance.
E. Other than as described above, neither the Adviser nor any of its supervised persons
receive any compensation from the sale of securities or other investment products.
Account Minimums and Types of Clients — Form ADV Part 2A (3/18/2022)
[Brochure]
Item 7 - Types of Clients
As mentioned in Item 4, the Adviser provides investment advisory services to private
investment funds for sophisticated, qualified investors. Currently, the Adviser has one such
fund as a Client.
The minimum investment in a Fund is generally $1,000,000. Acceptance of separate account
management relationships is determined on a case-by-case basis.