Fees and Compensation — Form ADV Part 2A (3/30/2018)
[Brochure]
Item 5 Fees and Compensation
Compensation received by Castle Peak for its investment management services is comprised of fees as set
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forth in the applicable Client’s private placement memorandum (if applicable) and/or other governing
documents, as such may be amended from time to time. With respect to investment management services
provided to the Non-CDO Trust, compensation is typically comprised of fees based on a percentage of
assets under management and performance-based fees. Fees based on assets under management are
generally in the range between .60% and 1.50% on an annualized basis. Performance-based fees are
generally in the range between 15% and 20% above a stated hurdle rate. The CDO Trusts pays an annual
management fee of .20% -.25% of assets as set forth in the applicable governing documents.
Generally, management fees are paid out of the monthly servicer collections, as part of the monthly
distribution of net proceeds. Any due but unpaid management fees are required to be paid from future
available funds upon distribution. No management fees are paid in advance of the month in which they
are earned.
In addition to the fees set forth above, Clients may also bear certain expenses in connection with the
Company’s advisory services that are not paid directly by such Clients, as allowed under the terms of the
applicable agreement(s), or approved for payment by a Client. These expenses typically include, but are
not limited to, third party operating and transaction-related expenses such as due diligence costs,
professional fees, and services related to the administration and resolution of specific assets in the Non-
CDO Trust or the CDO Trusts. Clients will also incur brokerage costs as discussed in Item 12.
Account Minimums and Types of Clients — Form ADV Part 2A (3/30/2018)
[Brochure]
Item 7 Types of Clients
Castle Peak currently provides investment advice to the Non-CDO Trust and CDO Trusts. Investment
advice is provided directly to these Clients and not to the individual investors of these Clients. Moreover,
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as stated above, at the present time, Castle Peak is conducting an orderly run-off of its portfolio assets and
as such, will not establish new Non-CDO Trusts or CDO Trusts or make any new investments.