Item 5 – Fees and Compensation
As compensation for investment advisory services rendered to Funds, the Firm generally receives a
management fee, and its affiliated general partners receive an incentive fee (as described more fully
below in Item 6) from the Funds. The Funds also bear certain other expenses, as described below.
The Governing Documents of each Client detail the fees, compensation and expenses charged in greater
detail. Differences exist from Fund to Fund and may exist at times among investors in each Fund.
The Firm typically receives from the Funds a management fee, payable quarterly in advance, ranging
from an annual rate of 1.50% to 2.50% depending on the Fund.
GLF generally receives from bespoke advisory clients a flat rate based upon the services provided and
the complexity of the engagement.
Management fees and other compensation are negotiable in certain circumstances and arrangements
with a Client can vary. The relevant Fund’s general partner is permitted, in its sole discretion, to waive
or reduce an investor’s management fee or incentive fee.
To the extent applicable, management fees, incentive fees and other expenses (discussed in Item C
below) are deducted from Fund assets. Management fees are accrued and paid on a quarterly basis as
per each Fund’s Governing Documents. Incentive fees are allocated as of the last business day of the
calendar year and as of any date on which an investor makes a withdrawal or receives a distribution
from such investor’s capital account(s).
For bespoke advisory clients fees are billed on a quarterly basis based on a negotiated flat rate.
Client Expenses
Subject to the provisions of the respective Governing Documents, the Funds shall pay such costs and
expenses as the Firm shall reasonably determine to be necessary, appropriate, or advisable to carry on
its business and realize its objective.
Each Fund is governed by its own Governing Documents, which detail a description of expenses to
be paid for such Fund. While differences exist among Funds, the following is a description of expense
categories generally charged to each Fund. The Funds’ expenses include, but are not limited to, the
following expenses incurred, and differ across Funds: (i) Organizational expenses; (ii) out-of-pocket
expenses incurred in connection with maintaining the existence of the general partner, the Fund and
their related vehicles and the routine administrative expenses of the same, including all costs and
expenses in connection with the maintenance of each such entity's registered office and registered
agent, regulatory costs, regulatory filing fees and compliance costs; (iii) costs associated with service
providers retained by the Fund, including but not limited to, accountants, attorneys, valuation agents,
custodians and administrators; (iv) banking, brokerage, borrowing, finders, depositary and similar fees
or commissions; (v) transfer, and other taxes costs, incurred in transacting in Fund assets; (vi)
extraordinary expenses associated with the Fund’s operations, including legal costs, expenses
associated with regulatory investigations and inquiries, payments pursuant to the Fund’s
indemnification obligations, and insurance; (vii) costs associated with the preparation of the Fund’s
financial statements, tax and other reports, including accounting costs; (viii) costs of meetings of the
limited partners and any similar meetings, if applicable; (ix) all costs and expenses related to the
sourcing, investigation, identification, analysis, negotiation, purchase, holding, monitoring or sale of
any investments, regardless of whether such investments are subsequently consummated; (x) the
management fee; and (xi) all costs and expenses related to the liquidation of the Fund’s assets upon
dissolution and the subsequent winding up of the Fund.
The management fee, incentive fee and expenses discussed above paid by the Fund and therefore the
investors are exclusive of brokerage commissions, transaction fees and other related costs and expenses
incurred by the Funds. The Firm shall not receive any portion of these commissions, fees and costs.
Please see Item 12 of this Brochure for more information about the Firm’s brokerage arrangements
for its Clients.
Allocation of Fees and Expenses
In good faith and in its fair and reasonable discretion, the Firm determines on a case-by-case basis
whether an expense should be borne by the Firm, a Fund, multiple Funds or a portfolio investment.
To the extent that the Governing Documents do not expressly provide for a method of allocation or
to the extent that an invoice does not relate to a specific Fund, the Firm will typically allocate common
expenses among multiple Funds on a pro rata basis based on each Fund’s current assets under
management, unless another method is more equitable. Where one or more Funds to which an
expense would otherwise be allocable are not permitted to receive an allocation based on the applicable
Governing Documents, the portion of the expense attributable to such Client will be borne by the
Firm.
Expenses directly related to the work on bespoke advisory clients will be billed to such clients,
consistent with the agreement between such client and the Firm.
As noted above, management fees are generally paid quarterly in advance. Subject to the terms of each
Client’s Governing Documents, the Firm generally permits withdrawals quarterly or annually on the
day preceding the anniversary of an investor’s capital contribution, subject to various other factors.
Bespoke advisory clients pay a portion of the fees due in advance and pay the remainder of the fees
on an ongoing basis.
Neither the Firm nor any of its supervised persons accept compensation for the sale of securities or
other investment products.