Item 5: Fees and Compensation
Fee Schedules
Our compensation depends on the manner in which we provide advisory services. We are compensated on various
combinations of a percentage of assets under management and performance-based fees. Fees may be negotiated or
waived in certain circumstances.
Private Funds
Management fees for Private Funds range from 0.75% to 2.00% annually of the client’s assets under management
(the Fund’s Net Asset Value {NAV} attributable to each investor in the Fund), calculated in arrears and accrued
monthly.
Fees may also include a performance fee or allocation generally ranging from 10% to 20%, which may be paid to us
or to our affiliates that serve as the general partner(s) of the Private Funds. The performance fee or allocations is a
percentage of the absolute net profits of the Private Fund (subject to a high-water mark).
Management or performance fees may be waived or lowered for certain investors in the private funds because of their
affiliation or relationship with CCI. Private fund fees are described to investors, in detail, in each private fund’s confidential
offering memorandum. The fund is only offered to qualified and accredited investors.
A withdrawal/redemption fee may be charged to an investor in the Fund on equal to (i) 2% of any capital withdrawn
within the initial 6 month period of an investment and (ii) 1% of any capital withdrawn after the i n i t i a l 6 month period
but prior to the first anniversary of an investment. Specific provisions for additions, withdrawals and terminations are
set forth in each fund’s confidential offering memorandum.
Other Expenses
The Private Funds bear all expenses incidental to their operations and business, including organizational, investment and
operating expenses. Investment expense include, but are not limited, to the expenses related to investing and holding
capital, such as brokerage commissions, ticket charges, expenses related to short sales, trade execution platforms, clearing
and settlement charges, custodial fees, bank service fees, interest expense, and extraordinary expenses. Operating
expenses include but are not limited to third party professional and service fees and related expenses, including legal,
administrative, consulting, custodial, regulatory reporting (including, but not limited to, Form PF, Schedule 13G, etc.),
expenses related to the ongoing offering of Interests (including any “blue sky” filing fees), accounting, software and support,
bookkeeping, investment and voting support, investor, auditing and tax preparation; premiums for directors’ and officers’
liability insurance (if any); indemnification expenses; research expenses such as systems, software, data, pricing feeds,
databases, and related computing equipment.
Fees and expenses for each Private Fund are described to investors, in detail, in each Private Fund’s confidential
offering memorandum.
Credit Capital Investments, LLC Form ADV: Part 2A Page 6
Separately Managed Accounts
Advisory fees for separately managed accounts are based upon a percentage of the market value of the assets under
management and may vary depending upon the nature of the portfolio to be managed. Separately managed account
advisory fees range from 0.40% to 1.50% annually of client assets under management. The annual fee shall be prorated
and payable monthly, in arrears, based upon the market value of the Assets on the last business day of the previous period
unless otherwise agreed with a client.
In addition, our clients may agree upon performance fees, which generally range from 10% to 20%. Performance fees
are based on a client’s absolute net profits (subject to a high-water mark). We may enter into individual agreements
with clients or investors with respect to the timing of accrual or payment of any fees. We typically bill clients for fees;
however, we may initiate payment of the management or performance fee from a client by instructions to the client’s
custodian. Some clients may select the method by which management or performance fees are paid. Separately managed
account fees are described to clients, in detail, in the client’s investment management agreement.
If any portion of the account(s) is withdrawn at any time other than at the end of a fiscal quarter, the pro rata portion
of any fee accrued by CCI will be deducted.
Other Expenses
Management and performance fees do not cover brokerage commissions, transaction fees, service provider fees, and
other related costs and expenses that will be incurred on behalf of clients. Execution of client transactions typically requires
payment of brokerage commissions by clients. “Item 12 – Brokerage Practices” further describes the factors that we
consider in selecting or recommending broker-dealers for the execution of transactions and determining the reasonableness
of their compensation.
Other expenses for the Private Funds are described above under Private Funds. With respect to other funds and accounts,
investment activity may also involve transaction fees payable by clients, such as sales charges, ticket charges, expenses
related to short sales, clearance and settlement charges, bank service fees, interest expenses, odd-lot differentials,
transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage accounts and securities
transactions. In addition, clients may incur certain charges imposed by custodians, broker- dealers, third party investment
consultants, and other third parties, such as custodial fees, consulting fees, administrative fees, and transfer agency
fees.
Cash balances are sometimes swept into money market funds that may be sponsored by a client’s custodian or broker-
dealer. Exchange traded funds may be used as an investment vehicle by the Funds to increase or decrease market exposure
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