Item 5: Fees and Compensation
Management Fees
Each SMA Client or Investor should review the appropriate Governing Documents for the Client
Account in conjunction with this Brochure for more complete information on the applicable
management fees.
Concentric is compensated for its SMA portfolio management services with either (i) an annual
management fee based upon the assets under management for each Client Account and/or (ii) an
expense reimbursement for agreed upon expenses. An SMA’s specific fee schedule and amount is
Concentric Capital Strategies LP Form ADV Part 2A: Firm Brochure
detailed in the executed investment management agreement between Concentric and the SMA
Client. Concentric may invoice SMA Clients either in advance or as of the end of a particular
month or calendar quarter in arrears. Any management fee will generally be based upon a
percentage of the assets under management advised by Concentric. The SMA will generally pay
Concentric directly via a wire transfer.
For a Fund, management fees will be outlined in the Governing Documents, but will generally be
based on a percentage of Fund AUM and collected quarterly in advance. Concentric debits
management fees directly from a Fund’s custodial or prime brokerage accounts.
If an SMA Client terminates the investment management agreement or an Investor redeems from
a Fund at a period of time other than the beginning of a particular month, quarter or year (as
described in the appropriate Governing Documents), Concentric will pro rate the management fee
for the period accordingly.
The management fees above are generally subject to waiver or reduction by Concentric in its sole
discretion with certain Clients or Investors. For example, Investors in a Fund who are associated
with Concentric, such as its officers or employees generally do not pay management fees though
they do pay their pro-rata share of operating costs. The management fee may vary by Client. The
Governing Documents specify the fees applicable to each Client.
Other Expenses
The Clients will bear all ordinary operating and other expenses, including, without limitation, the
following: expenses related to the research, due diligence, financing, monitoring and disposition of
actual and prospective investments, whether or not such investment is consummated, including,
without limitation, the following: travel expenses incurred by Concentric in connection with
researching potential investment opportunities; fees charged by Concentric to provide investment
sourcing services to, or on behalf of the Clients; provided, however, that such sourcing fees do not
exceed the rate typically charged by third parties engaged in such sourcing; fees and expenses
related to obtaining research and market data (including, without limitation, any information
technology hardware, software or other technology incorporated into the cost of obtaining such
research and market data, and including fees and expenses related to obtaining, processing and
analyzing research or market data that may be considered “big data” or “alternative data”, including
fees and expenses related to performing due diligence on potential providers of any of such
research or market data services (including, without limitation, “big data” or “alternative data”
services)); due diligence expenses including, without limitation, consulting and appraisal fees; travel
expenses; brokerage, prime brokerage, custodial, and futures commission merchant fees,
commissions and expenses; expenses relating to block trades; expenses relating to short sales;
clearing and settlement charges; custodial fees and expenses; bank service fees; interest expenses
and fees related to financings or refinancing; fees and expenses of proxy research and voting and
class action-related services; and fees and expenses of third-party professionals, including, without
limitation, consultants, investment bankers, attorneys and accountants; organizational and
reorganizational expenses; operational expenses, including the following: fees and expenses relating
to information technology hardware, software or other technology (including, without limitation,
costs of software licensing, implementation, data management and recovery services and custom
development) used to research investments, evaluate and manage risk, facilitate valuations, facilitate
accounting functions and/or facilitate compliance with the rules of any self-regulatory organization
or applicable law (including, without limitation, reporting obligations), facilitate and manage the
order execution and reconciliation of investments or otherwise manage the Client Accounts such
as Bloomberg terminals, portfolio management systems, risk management systems and order
management systems; fees and expenses of third-party risk management products, models and
services; fees and expenses of third-party professionals, including, without limitation, consultants,
Concentric Capital Strategies LP Form ADV Part 2A: Firm Brochure
valuation service providers, attorneys, accountants and third-party administrative fees and
expenses and including, without limitation, the costs of engaging or appointing a Money Laundering
Reporting Officer, a Deputy Money Laundering Reporting Officer and an Anti-Money Laundering
Compliance Officer; the costs of any litigation or investigation involving activities of a Fund, a Fund’s
taxes and third-party audit and tax preparation expenses; insurance expenses, including, without
limitation, premiums for cybersecurity insurance and liability insurance covering Concentric and
any affiliated entities, including a general partner to a Fund (each an “Affiliate”, and collectively,
“Affiliates”) and the members, partners, officers, employees and agents of Concentric or its
Affiliates, and each member of any advisory board of any Fund; fees and expenses (including,
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