Fees and Compensation — Form ADV Part 2A (3/28/2016)
[Brochure]
Item 5 – Fees and Compensation
Crossbeam Capital’s fee structure is generally negotiable and takes into consideration the
nature of the investment relationship and the anticipated investment management and advisory
services to be provided for a client. However, Crossbeam Capital typically charges an
investment management fee per annum at an annual rate of 1.5% of the committed and invested
capital under management.
In some cases, Crossbeam Capital also charges an equity placement fee which is based on the
equity placed in individual investments. This fee, though also negotiable, is generally 1% of the
total equity placed in an investment.
Reimbursement policies are disclosed in the private placement memoranda and constituent
documents of our pooled investment vehicles or separate account client entities. Costs that would
be reimbursable to Crossbeam Capital include, but are not limited to, organizational costs,
administrative costs, and other expenses required in the normal course of making an investment
or an investment decision.
Crossbeam Capital has the right to deduct fees directly from cash flow received by, and investor
capital contributions made to, our pooled investment vehicles or separate account client entities.
Management fees are paid quarterly, in advance. Equity placement fees are paid upon the closing
of a new investment. If an advisory services contract is terminated in the middle of a period, the
client will receive a pro rata refund of fees paid for that period based on the number of days that
the contract was in place.
Account Minimums and Types of Clients — Form ADV Part 2A (3/28/2016)
[Brochure]
Types of Clients
Crossbeam Capital provides investment management and advisory services to its clients on a
discretionary basis. These clients are primarily pooled investment vehicles. The investors in these
pooled investment vehicles are accredited investors, primarily insurance companies, a bank, and a
pension plan.
Crossbeam Capital also advises a limited number of separate account clients also consisting
primarily of insurance companies and a pension plan, but which may in the future include high
net worth individuals.
Minimum Account Size
Depending on the nature of the underlying investment, we sometimes impose minimum
investment amounts (typically ranging from $5,000,000 to $10,000,000) on investors in our
pooled investment vehicles and on separate account clients. Subject to the requirements of
certain legal restrictions (which may impose independent minimum investment thresholds over
which we have no control), we may waive these minimum investment amounts, as disclosed in
the private placement memoranda and governing documents of the pooled investment vehicle
entities.
IMPORTANT NOTICE
This Brochure may be provided to a prospective investor in one of our privately-offered pooled
investment vehicles, together with a private placement memorandum, organizational documents
and other related documents, in connection with a prospective investor’s consideration of an
investment in the pooled investment vehicle. While this Brochure may include information about
a pooled investment vehicle, it does not represent a complete discussion of the features, risks or
conflicts associated with that vehicle. More complete information about each of our pooled
investment vehicles is included in its private placement memorandum, organizational documents
and other related documents.
In no event should this Brochure be considered an offer of interests in a pooled investment
vehicle or relied upon in determining to invest in a pooled investment vehicle. It is also not an
offer of, or agreement to provide, advisory services directly to any recipient. Rather, this
Brochure is designed only to provide information about us to comply with regulatory
requirements under the Investment Advisers Act, which may cause information in this Brochure
to differ from the information provided in a private placement memorandum. If there is any
conflict between the information in this Brochure and similar information in a pooled investment
vehicle’s private placement memorandum, you should rely on the information in the private
placement memorandum.