Item 5: Fees and Compensation
Advisory Fees and Compensation
Generative SPVs
Management fees range up to 2% of each Investor’s capital commitment in accordance with the relevant
governing documents payable at the time of commitment.
There are carried interest arrangements in place for some Generative SPVs and profits will be distributed in
accordance with the relevant Governing Documents.
Funds
The fees and compensation applicable to each Fund are detailed in the applicable Fund’s Offering Documents.
Fee and compensation structures will vary among different classes of interests within each Fund. Management
fees range up to 1.5% of assets under management and are, in general, payable quarterly in advance. The
Management Fees are generally based on the market value of the securities and cash in the portfolio, however,
it may be partially based on the lower of cost basis or fair value for any “Private Investments” (as defined in
each Fund’s Offering Documents).
In addition to management fees, performance compensation is paid in the form of an incentive allocation. The
incentive allocation is an amount that ranging up to 17.50% of the realized and unrealized net capital
appreciation in the Master Fund, subject to a modified high‐water mark mechanism. The unrealized net capital
appreciation and net capital depreciation of Private Investments will not be taken into account in calculating
the incentive allocation. The net capital appreciation and net capital depreciation of Private Investments will be
included in the incentive allocation calculation only in the fiscal year during which a Private Investment is
realized (or deemed realized). Additional details regarding the incentive allocation paid by all classes of
interests are contained in the applicable Fund’s Offering Documents.
Management fees and incentive allocations are generally deducted from the applicable Investor’s capital
account.
In the sole discretion of the Funds’ General Partner, the incentive allocation may be waived, reduced or
calculated differently with respect to certain Investors.
Sub-Advised Funds.
With regards to the Sub-Advised Funds, fee arrangements are negotiated directly with such Clients and involve
management fees charged monthly in advance or arrears and an incentive allocation generally paid annually.
Fees are negotiable and individual arrangements are based on Client specific factors including but not limited
to asset under management, the risk/return parameters, and/or fund investor specific factors. All fee
arrangements are specified in the applicable Offering Documents.
Contribution Clients
With respect to the Contribution Client, Generative receives fixed fees, and may receive a discretionary bonus
as determined by a Contribution Client based on a variety of factors. All fees and bonus structures are
negotiated directly with each Contribution Client.
Generative Investment Partners LP Form ADV Part 2A Brochure
Neither the Firm nor any of its principals or employees receives any transaction‐based compensation for the
sale of securities or other investment products.
Additional Fees and Expenses
In addition to the advisory fees and compensation described above, Clients also bear their own expenses as
more fully described in each Client’s governing documents. The expenses described below are applicable to
certain Clients, however Clients should review their applicable governing documents for a comprehensive list
of applicable expenses. These expenses may include, without limitation, some or all of the following: (i)
expenses related to the research, due diligence, financing, monitoring and disposition of actual and prospective
investments, whether or not such investment is consummated, including, the following: travel expenses
incurred by a Generative Investment Partners LP Client or any trading subsidiary or special purpose vehicle or
by the Investment Adviser or its affiliates in connection with researching potential investment opportunities
(including travel, transportation, lodging and meal expenses); third‐party investment sourcing fees (including,
performance‐based fees); fees and expenses related to obtaining research and market data (including, any
information technology hardware, software or other technology incorporated into the cost of obtaining such
research and market data, and including fees and expenses related to obtaining, processing and analyzing
research or market data that may be considered “big data” or “alternative data”, including fees and expenses
related to performing due diligence on potential providers of any of such research or market data services); due
diligence expenses including, consulting and appraisal fees; brokerage, prime brokerage and futures
commission merchant fees, commissions and expenses (including fees, commissions and expenses of any
outsourced trading desk); expenses relating to block trades; expenses relating to short sales; clearing and
settlement charges; custodial fees and expenses; bank service fees; interest expenses and fees related to
financings or refinancings; fees and expenses of proxy research and voting and class action‐related services;
(ii) a Client’s direct or indirect pro rata share of any compensation payable in connection with the management
of any Private Investment by an unaffiliated third party or management team, which may include both asset‐
based fees and performance‐based fees (which, for the avoidance of doubt, will not reduce the Management
Fee or Incentive Allocation payable to the Investment Adviser and a Client’s General Partner, respectively);
(iii) operational expenses, including the following: fees and expenses relating to information technology
hardware, software or other technology (including, costs of software licensing, implementation, data
management and recovery services and custom development) used to research investments, evaluate and
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