Item 5: Fees & Compensation
The fees and compensation payable to us are negotiable and vary among clients. However,
the range of compensation is generally as follows:
Comprehensive Portfolio Management:
Assets Under Management Annual Fee
$0.00 to $5,000,000.00 1.00%
$5,000,000.01 to $10,000,000.00 0.75%
$10,000,000.01 to $20,000,000.00 0.60%
Over $20,000,000 Negotiable
Our firm’s fees are billed on a pro-rata annualized basis quarterly in advance, meaning that we
invoice you before the three-month billing period has begun. Billing amounts are based upon the
market value (or fair market value in the absence of market value) of the client's account(s)
(including both securities and cash) at the end of the previous quarter (or, for new clients, upon a
date agreed to by us and you).
Fees will be deducted from your managed account. In rare cases, we will agree to directly bill clients.
As part of this process, you understand and acknowledge the following:
a) Your independent custodian sends statements at least quarterly to you showing the market
values for each security included in the Assets and all disbursements in your account
including the amount of the advisory fees paid to us;
b) You provide authorization permitting us to be directly paid by these terms;
c) We send a copy of our invoice to the independent custodian at the same time we send the
invoice to you;
d) Our invoice includes a legend that urges the client to compare information provided in their
statements with those from the qualified custodian in account opening notices and
subsequent statements sent to the client for whom the adviser opens custodial accounts with
the qualified custodian.
Consulting & Concierge Services:
Our Consulting & Concierge services are billed hourly at a negotiable rate between $250 to $500 per
hour, on a negotiable fixed fee basis, or on an annual retainer basis. The total estimated fee, as well
as the ultimate fee that we charge you, is project based and dependent on the scope of service(s)
required and complexity of our engagement with you, dependent upon the nature of the relationship,
and the professional rendering the service(s). The fee-paying arrangements for services will be
determined on a case-by-case basis and will be detailed in the signed Agreement. The client will be
invoiced directly for the fees, or the client may provide approval for direct billing of ongoing fee based
service.
Our firm’s fees, whether it be on a negotiated fixed fee basis or annual retainer, are billed quarterly
in arrears based on the number of hours accumulated by our employees in the previous quarter.
Retirement Plan Services:
Our Retirement Plan Consulting services are billed on a fee based on the percentage of Plan assets
under management. The total estimated fee, as well as the ultimate fee charged, is based on the scope
and complexity of our engagement with the client. Fees based on a percentage of managed Plan
assets will not exceed 0.75%. The fee-paying arrangements for Retirement Plan Consulting service
will be determined on a case-by-case basis and will be detailed in the signed Agreement. Clients will
be invoiced directly for the fees.
Private Fund:
Management Fee
We generally receive a management fee of 2.5% of total committed capital per annum (paid quarterly
in advance) during the investment period, subject to the terms as outlined in the Offering Documents.
Incentive Allocation
The Fund’s general partner generally receives a carried interest equal to a percentage of all realized
profits, as described more fully in the Fund’s Offering Documents. The carried interest is generally
subject to a giveback at the end of life of the Fund if the general partner has received excess
cumulative distributions.
The carried interest will only be charged to accounts of those investors who are “qualified clients” as
defined in Rule 205-3 of the Investment Advisers Act of 1940, as amended (“Advisers Act”).
Limited Negotiability of Advisory Fees
We, in our sole discretion, may waive our minimum fee and/or charge a lesser investment advisory
fee based upon certain criteria (e.g. historical relationship, type of assets, anticipated future earning
capacity, anticipated future additional assets, dollar amounts of assets to be managed, related
accounts, account composition, negotiations with you, etc.). The specific fee schedules are identified
in the client agreement between the adviser and each client. Discounts, not generally available to our
advisory clients, may be offered to family members of associated persons of our firm.
Other Fees
Comprehensive Portfolio Management:
Clients will incur transaction charges for trades executed by their chosen custodian. These
transaction fees are separate from our firm’s advisory fees and will be disclosed by the chosen
custodian. Clients may also pay holdings charges imposed by the chosen custodian for certain
investments, charges imposed directly by a mutual fund, index fund, or exchange traded fund, which
shall be disclosed in the fund’s prospectus (i.e., fund management fees, initial or deferred sales
charges, mutual fund sales loads, 12b-1 fees, surrender charges, variable annuity fees, IRA and
qualified retirement plan fees, and other fund expenses), mark-ups and mark-downs, spreads paid to
market makers, fees for trades executed away from custodian, wire transfer fees and other fees and
taxes on brokerage accounts and securities transactions. Our firm does not receive a portion of these
fees.
You may also incur “account termination fees” upon the transfer of an account from one brokerage
firm (custodian) to another. These account termination fees are believed to range generally from $0
...