Fees and Compensation — Form ADV Part 2A (3/31/2023)
[Brochure]
Item 5 . Fees and Compensation
Management Fees and Fee Payment
Formation Capital, through its Affiliates, is compensated for services by receiving management fees
structured in one of three ways: (i) a percentage of invested capital, (ii) by number of real estate assets
under management or (iii) a fixed annual fee. The management fees paid by each Fund are negotiated and
agreed to by the Fund’s investors and set forth in the Fund’s Offering Documents. Management fees are
typically paid on a monthly basis.
In addition to the management fees, the Funds generally pay certain carried interest distributions, as
described in Item 6 below and defined in each Fund’s Offering Documents.
Additional Fund Fees and Expenses
The management fees payable above are exclusive of, and are in addition to, certain third-party fees,
including, but not limited to, transaction fees, audit fees, legal fees, exit fees and other related costs and
expenses that may be incurred by the Funds, as more fully described in the relevant Fund’s Offering
Documents. For information regarding conflicts of interest in the allocation of expenses and Formation
Capital’s business relationships please see the responses to Items 10 and 11 below.
Account Minimums and Types of Clients — Form ADV Part 2A (3/31/2023)
[Brochure]
Item 7. Types of Clients
Formation Capital’s current clients are limited to the Funds, each of which is a private investment vehicle.
The Funds generally do not impose a minimum investment commitment. Due to the private nature of the
Funds, however, there are minimum investor criteria, which are fully described in each Fund’s Offering
Documents.