Item 5. Fees and Compensation
The fees and expenses that are applicable to an investment with the Adviser are set forth and agreed to in
each Client’s governing documents, which may include a private offering memorandum, subscription and
operating agreement, and investment management agreement or other agreement (collectively, the
“Offering Documents”). Investors and prospective investors must carefully review the Offering Documents
of the Client in which they are invested or may invest, to review the specific fees and expenses applicable
to their investment.
The Adviser charges the Accounts management fees ranging from 0.5% to 1.25% per annum based on a
percentage of the Account’s average net asset value and shall be paid quarterly in arrears, by deduction
from the Account. All reasonable expenses incurred in the ordinary course of business relating to the
Accounts including, but not limited to, trading commissions, costs of the administrator, any brokerage and
custody fees, and other reasonable costs of safekeeping, transport and acquisition and disposition shall be
paid by the Account, by deduction from the Account.
The Adviser charges the Funds asset-based investment management fees based on the value of each Fund’s
assets under management. The Adviser will also be eligible to receive from each Fund an incentive
allocation, which is compensation based on a share of capital gains on, or capital appreciation of, each
Fund’s assets. The management fees and the incentive allocations may be paid to the Adviser or a related
person of the Adviser. Fund investors are subject to the management fee and incentive allocation through
their investment in the Fund.
For the Funds that charge a management fee, the fee, payable quarterly in advance, is at an annual rate
ranging from 0.75% to 1.0% of the value of each investor’s account as of the beginning of the applicable
quarter. The management fee will be prorated for any period that is less than a full fiscal quarter, and will
be adjusted for subscriptions and withdrawals during the quarter. Each Fund’s custodian will deduct the
management fee from the Fund’s account.
The incentive allocation charged to each Fund ranges from 15% to 20% of the Fund’s net profits (including
any realized and unrealized gains and losses) and may be subject to a hurdle.
In addition to paying investment management fees and incurring performance-based fees, as set forth in the
relevant Offering Documents, the Funds are subject to other investment expenses, such as commissions;
research consultants’ fees and research fees and expenses (including research-related travel and
subscription fees for services such as Bloomberg); compliance, administration, legal, audit and accounting
expenses; regulatory compliance, filings and reporting (including, but not limited to, Form PF) expenses;
interest on margin accounts and other indebtedness; borrowing charges related to short sales; custodial fees;
and any other expenses reasonably related to the purchase, sale or transmittal of Fund assets; organizational
expenses; bank services fees; and Fund-related insurance costs (including D&O and E&O insurance for the
investment manager and general partner). Please see Item 12 of this Brochure, regarding brokerage and
transaction fees the Clients will incur.