Item 5: Fees and Compensation
Separately Managed Accounts
For discretionary and non‐discretionary investment management services in a separately managed
account, CAM will charge a fee based upon assets under management and will not charge a
performance fee.
The fee schedule for separately managed accounts, discretionary and non‐discretionary, is as follows:
Assets under management Management Fee Effective rate
in USD or equivalent Marginal Rate (Calculated on the maximum
amount in the corresponding range.)
From 0 to 2.5M 1.50% 1.50%
From 2.5 to 5M 1.25% 1.37%
From 5 to 10M 1% 1.19%
From 10 to 20M 0.85% 1.02%
From 20 to 50M 0.75% 0.86%
50M and higher Negotiable
Depending on the billing parameters as outlined in the IMA, quarterly fees are either payable in
advance or in arrears. Fees are calculated in US Dollars and charged on the first business day of each
calendar quarter, and depending on the provisions of the investment management agreement, will be
based upon either the fair market value of the assets under management in the client’s account on
the last business day of the previous quarter, or the average month-end values for each of the
months of the prior quarter. In each case the valuations are as provided by the custodian. The client
authorizes the custodian, acting as the agent of the client, to withdraw from the client’s account any
fees that are due to CAM.
Either party can terminate the client IMA at any time and with immediate effect. CAM does not charge a
termination fee. Clients remain responsible for investment advisory fees up to and including, but not
after, the effective date of termination. Clients will promptly receive a refund of any prepaid fees
beginning from the effective date of termination.
Our separately managed account clients are responsible for other fees and charges incurred as we
manage their assets. These include brokerage commissions/transaction fees, custodian fees, stamp
duty, taxes, exchanges and other trading‐ or custodial‐related fees. Clients are responsible for third‐
party fees.
We will typically invest discretionary client assets in unaffiliated mutual funds and exchange‐traded
funds. When this happens, clients will be responsible for the fees that are disclosed in each fund’s
prospectus or private placement memorandum. Such fees are exclusive of and in addition to our
management fee.
Fees are negotiable depending on the circumstances.
Private Funds
The fees and other compensation for advisory services to Private Funds are set forth in the applicable
Crescendo Asset Management LLC March 14, 2023
Private Fund Governing Documents. Generally, each Private Fund pays CAM a fee equal to a
percentage (typically, 1.00%-1.75% per annum) of the capital account balances of each Client as of the
first day of each calendar quarter (the “Management Fee”). The Management Fees are payable either
in advance or arrears for each calendar quarter, depending on the Private Fund.
In addition to the Management Fee, CAM (or an affiliate of CAM which serves as the general partner of
the Private Funds) is generally entitled to an incentive allocation, generally ranging from 10% to 15% of
net profits allocated to each Private Fund investor, typically subject to an applicable “high water mark”
(the “Incentive Fee”). The Incentive Fee is determined with respect to each calendar quarter as of the
close of business on the last business day of the respective quarter.
The Private Fund Governing Documents permit CAM (or the general partner of the Private Funds) to
reduce, waive, assign, participate or otherwise share the Management Fee or Incentive Fee payable
with respect to any investor.
Please refer to the individual Private Fund Governing Documents, including each Private Fund’s Private
Placement Memorandum, for additional detail regarding the calculation of the Management Fee and
Incentive Fee. (Item 6 provides further information regarding Incentive Fees, including conflicts of
interest).
Private Fund Additional Fees and Expenses
In addition to the Management Fee and incentive allocations, the Private Funds generally will bear all
of its organizational expenses and will reimburse CAM and/or the general partners, as applicable, to the
extent that any of them bears organizational or offering expenses on behalf of the Private Funds.
In general, the Private Funds will bear all of their own operating expenses, which generally include,
without limitation: operating expenses such as investment-related expenses (i.e., expenses that CAM
reasonably determines to be related to the investment of the Private Fund’s assets, such as any
applicable brokerage commissions, custodial fees, bank service fees, interest expense, and expenses
related to a proposed investment that was not consummated); investment-related travel expenses and
travel and entertainment expenses incurred in originating debt and/or equity instruments to
prospective borrowers; external transaction-related legal and due diligence expenses; software and
hardware costs regarding information technology; expenses incurred in connection with any
amendments to the Operating Agreement or other Fund documents and external legal fees relating to
the Fund’s activities and operations; expenses associated with meetings of limited partners or
investors; professional fees relating to investments (including, without limitation, expenses of
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