Item 5. Fees and Compensation
FEP charges fees based on a percentage of client’s assets under management. The fees
are charged in advance or arrears based upon the market value of the assets on the last
day of the previous period. In some cases, FEP may charge a fixed fee for investment
advisory services. In most instances, fees are deducted from client accounts. FEP does
not have access to the bank accounts and another party is responsible for compensating
FEP. If a client prefers, they can be billed directly and remit a check or wire to pay for
FEP investment advisory services.
When providing management and advisory/consulting services to clients, FEP will
typically charge a fee based upon the time and billing rate for a particular engagement.
Separately Managed Accounts
Fees for Separately Managed Account services are established according to each client’s
Investment Advisory Agreement. The typical fee charged is 1.00% of assets under
management. In certain circumstances, a fee less than this amount may be charged. Fees
are charged either quarterly in advance, or monthly in arrears, depending on the terms of
the client agreement. If a client prefers, they can be billed for the Firm’s investment
advisory services, but are also able to allow the fees to be deducted based on the
Investment Advisory Agreement.
Family Endowment Partners, LP
Brochure
Certain direct private investments will be billed with a “hold back”, meaning a portion of
fees owed to FEP will be accrued but not billed to account for potential valuation
variances. If there is a “hold back” on certain fees owed to FEP, FEP will send a “true
up” bill on an annual basis, at which time the Client will be responsible for paying the
outstanding accrued fee previously owed under the “hold back” but which had not been
billed.
FEP provides advisory services to clients who may allocate a portion, or none, of their
assets to the FEP Fund I, LP, the FEP Fund II, Ltd, funds that are owned by other related
entities (“Mosaic Funds”), or the Legacy Funds (collectively the “Funds”). There is no
requirement for a FEP client to invest in the Funds. However, if a client maintains
separately managed accounts and invests in one or more of the Funds, they are charged a
fee at the respective Fund level based on each particular Fund’s documents. The client is
also charged a second separate fee on those Fund assets inside the Separately Managed
Account(s), which means the client will pay the Fund fee plus the Separately Managed
Account fee on that Fund holding.
FEP Fund I, LP and FEP Fund II, Ltd.
The annual fee for FEP’s management of these funds is pro-rated and charged quarterly,
in advance, based upon the value of the assets on the last day of the previous quarter.
The annual fee varies between 0.65% and 1.0% depending on the specific terms of the
funds. In some cases FEP may be entitled to performance fees (i.e. carried interest)
related to these funds. The terms are outlined in the respective funds offering documents
and are available upon request.
Sub-Advisers
In addition to the fees charged by FEP, a fee will be charged by the investment managers
or sub-advisers as well if one is used. Please see the Investment Management Agreement
for specific fees that each sub-adviser charges for their services. These fees are in
addition to other fees charged by FEP.
Other Charges
Other charges may include mutual fund expenses, custodial fees and brokerage fees
charged on individual purchase and sale transactions. Clients may be able to purchase
certain investments that FEP recommends through other custodians, advisers or brokers.
Termination of Relationship
Clients may terminate their relationship with FEP at any time by mutual consent or by
giving at least thirty (30) day’s notice. FEP reserves its right to also terminate the
relationship by the same means. Clients who terminate their relationship with FEP are
reimbursed a pro-rata portion of their advisory fees as described in our client agreement.
Upon termination of the relationship, FEP will not have any continuing obligation to take
any action on the client’s behalf except as required by regulatory rules and regulations.
Additional Compensation Disclosures
Family Endowment Partners, LP
Brochure
Lee Weiss is the Managing Partner for FEP, but he also has management responsibilities
in the following entities for which clients of FEP may be solicited. Lee Weiss may
receive commissions, management fees, incentive fees or other compensation as part of
his compensation agreements with these entities. We are aware that this may present an
inherit conflict of interest; however, we have policies in place to ensure that this does not
occur. All the funds noted in the rest of this section fall under the umbrella of Mosaic
Funds as previously noted.
Lee Weiss is the Chairman of StillPoint Capital, LLC (“StillPoint”) and is also a
registered representative. StillPoint, is a Florida based broker/dealer registered with the
Financial Industry Regulatory Authority and is a member of the Securities Investor
Protection Corporation. StillPoint provides domestic and international investment
banking (private placement, merger & acquisition advisory services), corporate advisory
consulting services and a specialized registered representative securities licensing
program for registered representatives.
MIP Global, Inc. (US), for which Lee D. Weiss is the CEO, is the managing member of
Global Domain Partners, LLC, the investment manager and managing member to the
Global Domain Vector Fund, LLC, a Delaware Limited Liability Company, whose
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