Item 5 – Fees and Compensation
Private Funds
As compensation for its advisory services provided to the Funds, CCM receives management fees based
on the assets under management, payable in advance on either a monthly or quarterly basis, as set forth
in the offering documents of each respective Fund. The management fee is not negotiable, although CCM
retains the discretion to waive fees for one or more investors, in whole or in part.
In addition to the management fee, an investor in the Funds bears its allocable share of expenses
associated with the operations of the Funds. These include, among others:
All costs and expenses directly related to its investment program, including without limitation, (i) all
transaction costs relating to the Fund’s investments (including, without limitation, expenses related to the
investments of the Fund’s assets, such as brokerage commissions and other transaction costs, negotiation
expenses (including related travel expenses), whether or not the related investment is consummated;
clearing and settlement charges, commissions (including fees and expenses charged by outsourced
traders), custodial fees, margin and interest expenses and commitment fees on debit balances or
borrowings, borrowing charges on securities sold short, and any issue or transfer taxes chargeable in
connection with any securities transactions); consulting, legal and other professional fees relating to
potential and actual investments (collectively, the “Investment-Related Expenses”); (ii) expenses of
professionals providing services to the Fund, including legal, audit and tax preparation expenses;
accounting fees; administration fees and expenses (including fees and expenses of the Administrator); fees
and expenses for order management systems (OMS) and risk management reporting; insurance expenses,
including costs of any liability insurance obtained on behalf of the Fund (including, without limitation,
directors and officers insurance), organizational expenses, regulatory costs and expenses (including filing
and license fees and preparation and submission of filings and licenses), costs of reporting and providing
information to Partners, research (which may include, without limitation, Bloomberg services and other
market data services and other data associated with the calculation and distribution of the Fund’s net asset
value), due diligence and all other costs and expenses related to the Fund’s business and operations (other
than the Other Expenses (as defined below)) (collectively, the “Operating Expenses”), and (iii)
Management Fees, any entity-level taxes, costs of any litigation or investigation involving Fund activities,
indemnification expenses, any extraordinary expenses (collectively, the “Other Expenses”), and all other
costs and expenses related to the Fund’s business and operations. Expenses that the General Partner
determines relate to any specific Designated Investments will be charged to the applicable Designated
Investment Accounts (as defined within the Fund Documents). A portion of the Feeder Fund’s and the
Master Fund’s operating expenses may be shared with other investment entities or accounts managed by
the General Partner, Investment Manager or any of their respective affiliates on an equitable basis.
• Out-of-pocket costs related to the administration of the Funds, including accounting, audit,
administrator, consulting and legal expenses, risk management reporting, insurance expenses, costs of
any litigation or investigation involving the Funds’ activities, and costs associated with reporting and
providing information to investors; and
• Expenses associated with the organizational costs and the offering of interests in a Fund (including
legal and accounting fees, printing costs and “blue sky” filing fees and expenses but excluding travel and
out-of-pocket expenses incurred in connection with the offering of limited partner interests).
For the Master/Feeder Funds, it is anticipated that most investment related expenses and certain other
expenses, including without limitation, the management fee, will be incurred by the Master Fund, and the
Feeder Funds will be allocated its pro rata portion of such expenses.
Investors should review the expanded summary of expenses in each respective Funds’ private offering
memoranda.
These expenses are deducted from the capital accounts of investors at the end of the fiscal period in which
they are accrued by the Funds.
RICs and Sub-advised Funds
CCM receives fees for services provided to the RICs based on the current net assets of the funds, as
outlined in each funds ‘prospectus. All investors should refer to the funds’ prospectus for additional
information regarding fees associated with different Fund share classes as well as the expenses associated
with an investment in each.
Investment advisory services provided to RIC Clients may be terminated in accordance with the terms
outlined in their respective agreements.
We serve in a sub-advisory capacity for U.S. and offshore investment companies, both registered and
unregistered, that are managed by third parties. Fees charged by CCM vary from client to client depending
on the type, size, and complexity of the client account. In general, such fees may include a management
fee (which is generally calculated as a percentage of the notional value of the portfolio or client commitment)
and/or a performance-based compensation arrangement. Fees for such services are negotiated with the
manager and may be set forth in the fund’s registration statement or other similar offering or governing
document.
Separately Managed Accounts
Fees and payment terms with respect to SMAs for which CCM provides advisory services are negotiated
on a case-by-case basis, the details of which are outlined and agreed upon in the investment management
agreements in place with each Client. SMA Clients may be terminated in accordance with the terms outlined
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