Item 5: Fees and Compensation
In general, CGI receives a management fee and a carried interest (i.e., a portion of a Client’s profits)
in connection with advisory services. Investors in a Fund also bear certain expenses. Summary
information is provided below regarding applicable fees and expenses, which are detailed more
extensively in each Fund’s private offering memorandum, limited partnership agreement or other
governing and disclosure documents, (collectively, “Governing Documents”).
Management Fees
The Funds will each pay Management Fees to CGI regardless of the Fund’s performance. The Funds
will bear an annual management fee, payable quarterly in advance on a calendar year basis.
Management Fees will be prorated for any period of less than a full fiscal quarter (based upon the
number of days elapsed), and refunded by CGI to the Fund in the event of a termination before the
end of a billing period. The Management Fee will be allocable to and determined in respect of the
capital accounts of the limited partners who are subject to the Management Fee. CGI OPO pays no
management fees, but is subject to certain expenses.
CGI Fund I
CGI Fund I - Management Fee
During the “Commitment Period” (as defined in the Fund’s Governing Documents, but
generally meaning a period during which new investments are made by the Fund), the
Management Fee will be 2.0% per annum (0.50% quarterly) of the Fund’s aggregate
“Capital Commitments” (as defined in the Fund’s Governing Documents, but generally
meaning the amount that an investor commits to contribute to the Fund over the life of the
Fund). Following the Commitment Period, the Management Fee will be 1.5% per annum
(0.375% quarterly) of the aggregate unreturned capital contributions to the Fund, plus any
amounts reserved for follow-on investments.
CGI Fund I - Transaction Fees; Management Fee Offset
In the event the Fund’s general partner, CGI or certain affiliates receive transaction fees,
origination fees, commitment fees, disposition fees, investment banking fees, breakup fees,
or similar consideration (whether payable in cash or in-kind) which is received in connection
with the closing (or failure to close) of a real estate investment or a prospective but
unconsummated investment for the Fund, including but not limited to broken deal fees,
topped bid fees and cancellation fees, monitoring fees and directors’ fees (as applied to CGI
Fund I, “Transaction Fees”), an amount equal to 50% of the dollar amount of such
Transaction Fees is applied on a dollar-for-dollar basis to reduce the Management Fee to be
paid by the Fund.
Additional Fees
CGI or one of its affiliates may receive acquisition fees, property management fees, leasing
fees, construction fees, development fees, operational fees, administrative fees, asset
management fees, financing fees, refinancing fees, or other similar fees, from the Fund’s
real estate investments (or holding companies which own such investments), to the extent
permitted under the Governing Documents or otherwise approved by the Fund’s Advisory
Committee (as applied to CGI Fund I, “Additional Fees”), but specifically excluding
Transaction Fees. These Additional Fees will not offset the Management Fee. An “Advisory
Committee” is a group of investors selected to approve certain conflicted transactions on
behalf of a private fund, and is commonly used in the private fund industry.
CGI Hospitality Opportunity Fund I
CGI Hospitality Opportunity Fund I – Management Fee
During the Commitment Period, the Management Fee will be 2.0% per annum (0.50%
quarterly) of the Fund’s aggregate Capital Commitments attributable to the limited partners
bearing the Management Fee. Following the termination of the Commitment Period, the
Management Fee will equal to 1.5% per annum (0.375% quarterly) of the invested capital
attributable to the limited partners bearing the Management Fee.
CGI Hospitality Opportunity Fund I - Transaction Fees; Management Fee Offset
In the event the Fund’s general partner, CGI or certain affiliates receive transaction fees,
origination fees, commitment fees, investment banking fees, breakup fees, or similar
consideration which is received in connection with the closing (or failure to close) of an
investment or a prospective but unconsummated investment for the Fund, including broken
deal fees, topped bid fees and cancellation fees, monitoring fees and directors’ fees (as
applied to CGI Hospitality Opportunity Fund I, “Transaction Fees”), an amount equal to
50% of the dollar amount of such Transaction Fees is applied on a dollar-for-dollar basis to
reduce the Management Fee to be paid by the Fund.
Additional Fees
CGI or one of its affiliates may receive fees for services provided in connection with an
investment, which services are not ordinarily provided by a Fund’s general partner or
manager in their capacity as such, including acquisition fees, property management fees,
broker fees, leasing fees, construction management fees, development fees, operational fees,
administrative fees, social data collection and management fees (including social impact
tracking), asset management fees, structuring fees, financing fees, refinancing fees,
disposition fees or other similar fees, from the Fund’s investments (or holding companies
which own such investments) or such other fees approved by the Fund’s Advisory
Committee (as applied to CGI Hospitality Opportunity Fund I “Additional Fees”), but
specifically excluding Transaction Fees. These Additional Fees will not offset the
Management Fee.
CGI FOF
CGI FOF – Management Fee
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