FEES AND COMPENSATION
A. Advisory Fees and Compensation
The fees applicable to each Fund are set forth in detail in each Fund's offering documents. A brief
summary of such fees is provided below.
1. Luxembourg Funds
Management Fee
Generally, the Luxembourg Funds will pay the Management Company an annual management fee,
payable quarterly in advance. The Management Fee will be (i) 1.00% -1.75% per annum of the
aggregate capital commitments to the Luxembourg Funds less invested capital contributions and
(ii) 1.00%-1.75% per annum of the invested capital contributions.
Unitholders admitted to the Luxembourg Funds subsequent to the initial closing will initially be
responsible for the Management Fee upon their admission in the amount such Unitholders would
have had to pay had such Unitholders been admitted at the Initial Closing.
Carried Interest Distribution
Generally, the Investment Adviser is entitled to a carried interest distribution (a "Carried Interest
Distribution") in an amount equal to 15%-20% of any realized appreciation in the net asset value
of the Luxembourg Funds, subject to an 8%-10% Preferred Return, certain adjustments and a loss
carry forward mechanism.
The Investment Adviser may, without the approval of any investor, from time to time enter into
agreements with certain investors that provide for terms that are different from those described in
the pertinent private placement memorandum.
B. Payment of Fees
Client fees are normally billed separately rather than deducted from the assets of such clients. As
discussed above, the management fees are normally charged on a quarterly basis and performance
fees are charged when investments are realized unless negotiated otherwise.
C. Additional Fees and Expenses
Generally, each client will bear its own operating expenses, including, but not limited to,
investment expenses (e.g., brokerage commissions, acquisition fees, expenses relating to short
sales, clearing and settlement charges, loan servicing fees, custodial fees, initial and variation
margin, interest expense), professional fees (including, without limitation, expenses of consultants
and experts' fees relating to particular investments and retainer fees for sourcing services), travel
and other expenses related to investments, entity level taxes, legal expenses, fees of the
administrator, internal and external accounting, loan-monitoring, portfolio tracking software, audit
and tax preparation expenses, appraisal and valuation fees, premiums for directors and officers,
errors and omissions and lender liability insurance, expenses relating to the offer and sale of fund
share or units, including travel, printing and mailing fees, the management fees and extraordinary
expenses.
Please see Item 12 of this brochure for further information related to the Investment Adviser’s
investment practices.
D. Additional Compensation and Conflicts of Interest
No supervised persons accept compensation for the sale of securities or other investment products.