Item 5 – Fees and Compensation
Fee Schedule for Services Provided to Bayview Partners
Asset Based Fee
DEP receives asset-based fees from Bayview Partners in an amount equal to 1.00% of the
Fund’s net assets on an annual basis. These fees are assessed monthly, in arrears, and will be
adjusted pro-rata for any subscriptions or redemptions made during the month.
Performance Fee
DEP receives 10% of the Fund’s net profit each year, net of the asset-based fee.
Expense Reimbursement
DEP is reimbursed for any expenses relating to the Fund’s formation and operation.
Payments to Hollencrest Capital Management, LLC
From these fees, DEP pays HCM for its advisory and placement services. HCM’s compensation
arrangement (for sub-advisory portfolio management services, administrative services and
placement agent services) through the written investment management agreement (and other
agreements) with DEP allows for HCM to receive a portion of the base as a percentage of
assets. The performance fee compensation is paid to DEP by Bayview Partners. The actual
advisory fees payable to DEP by Bayview Partners is described in the private placement
memorandum.
Additional Fees Payable by the Fund
Services provided by DEP and/or HCM to Bayview Partners do not include service charges or
other transaction costs/expenses which are borne solely by Bayview Partners and the LP
investors.
Double Eagle Partners, LLC dated March 27, 2019
Form ADV Part 2A Brochure Annual Update
Private Real Estate Investment-Related Fees
As mentioned in “Item 4 – Advisory Business”, DEP, is a member of the GP in a private real
estate deal structure and as a member is entitled to receive distributions of expendable
income, net proceeds, distributions of the acquisition fee, distributions of the asset
management fee and other fees as outlined in the operating agreement or other disclosure
documents and fee agreements. Any questions related to private real estate investments and
fees received by DEP should be directed to the Firm.
General Information on Advisory Fees
Portfolio Valuation for Fee Calculation and Performance Purposes
DEP relies upon HCM’s policy to apply appropriate valuation methodologies in light of
characteristics of the particular asset as well as all relevant circumstances. DEP primarily uses
the prices as provided by the Fund’s qualified custodian for marketable securities. If DEP
discovers issues or errors in the pricing file delivered by the custodian, DEP may utilize a third-
party source to value the security and override the original price in the portfolio accounting
system. In the case of certain private investments and alternative assets held by Bayview
Partners, DEP will look to HCM’s fair valuation process to apply internal value determinations
when necessitated. In very rare occasions this process may also be applied to marketable
securities. Fair value is defined as a reasonable valuation for an asset on a specific
measurement date under current market conditions regardless of whether that valuation is
directly observable or estimated using another valuation technique. Furthermore, when
measuring fair value, an investment adviser must take into account the characteristics of the
asset when valuing the asset at the measurement date. In all cases, fair value is a reasonable
best efforts estimate.
Transaction Costs
Certain transaction costs are paid by Bayview Partners to custodians, brokers, third party
investment advisers and other third parties, which include, but are not limited to, the following:
• Custodial Fees
• Odd-Lot differentials
• Transfer taxes
• Wire transfer and electronic fund processing fees
• Other fees and expenses that may be applicable and incurred
Double Eagle Partners, LLC dated March 27, 2019
Form ADV Part 2A Brochure Annual Update
Additional Fees and Expenses
The portfolio management services provided by HCM include those individual investments HCM
believes are the most suitable to meet the Fund’s investment objectives. In addition to
transaction costs borne by the Fund, these investments also charge additional fees and
expenses. These additional expenses and fees are in the form of, but not limited to, the
following:
• Advisory/management fees
• Distribution fees
• Administrative and operational expenses
Official Record of Bayview Partners Portfolio Data: For performance and cost basis
information (including capital gains or loss information), the “official” record-keeper of the
Fund portfolio data and information is the Fund’s Administrator. If LP investors have questions,
please contact DEP to discuss.