Item 5: Fees and Compensation
Separate Account Clients
Greer Anderson’s investment management agreements with Separate Account Clients describe,
among other matters, the nature of the advisory relationship; whether discretionary investment
authority, if any, has been granted; and fees (including whether fees are to be deducted directly
from a Client’s account or separately billed).
Separate Account Client fees (“Separate Account Fees”) are generally a fixed fee and based on a
percentage of assets under management and agreed on a Client by Client basis. Separate
Account Client fees generally conform to the following schedule:
0.50% on all separate account assets under management.
Additional fees may be paid by Clients from time to time. Fees are typically billed quarterly to
Clients in arrears based on the agreed upon rate. Fees are invoiced and not deducted from the
separate client accounts. Greer Anderson’s fee generally covers the services provided to Clients
for advising, structuring and monitoring their portfolios. Greer Anderson may in its sole
discretion agree to accept an alternative fee arrangement to the amounts set forth in the schedule
above with respect to any Client.
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Green Anderson Capital, LLC Brochure
GAC Funds
The GAC Funds are unregistered pooled investment vehicles that invest primarily in private
funds, separately managed accounts or mutual funds managed by Portfolio Managers. The GAC
Funds pay Greer Anderson a management fee based on a percentage of assets under
management. The fee is calculated on unaffiliated assets under management and ranges from
0.75% to 1.00%. The GAC Funds’ administrator calculates the fees owed by the GAC Funds
and each individual investor’s capital account and deducts the fees owed from the individual
capital accounts.
Specific information relating to the fees charged by the GAC Funds can be found in each Fund’s
Memorandum.
If a Separate Account Client invests in a GAC Fund, the Separate Account Client would pay the
GAC Fund management fees on the assets invested in the GAC Fund and would not also pay
Separate Account Fees on the assets invested in the GAC Fund. Similarly, if a GAC Fund
(“Investor Fund”) invests in another GAC Fund, investors in the Investor Fund will only pay one
level of management fees on such assets.
Additional Information on Fees
Greer Anderson’s fees do not include, if any, transaction charges (more information on Greer
Anderson’s transaction practices can be found under the Item 12 entitled “Brokerage Practices”),
custodial fees, transfer taxes, exchange fees, interest charges, electronic fund and wire transfer
fees, or any charges, taxes or other fees mandated by any federal, state or other applicable law or
otherwise agreed to with the Client. Generally, Client expenses are billed directly to the
applicable Client, however, if more than one Client incurs a shared expense, Greer Anderson
allocates such shared expense among the applicable Clients (i) in proportion to the net asset
value of each applicable Client; (ii) in proportion to the size of the investment made by each
client to which the expense relates; or (iii) in such other manner as Greer Anderson considers fair
and reasonable.
In addition, if Greer Anderson recommends or beneficially acquires a Portfolio Fund (both
affiliated (i.e., the GAC Funds) and unaffiliated), for Client accounts, Clients will be responsible
for the fees and expenses charged by the underlying investment vehicle. These fees and
expenses include, among other things, management fees, performance-based fees, or both.
(However, as noted above, to the extent Separate Account Clients or Investor Funds invest assets
in a GAC Fund, the Separate Account Clients and investors in the Investor Funds would pay
only one level of management fees on such assets.) In addition, some of the investments
recommended by Greer Anderson may be purchased directly. Therefore, Clients could generally
avoid a second layer of fees by not using the advisory services of Greer Anderson and by making
their own decisions regarding such investments.
Greer Anderson does not require Clients to pay fees in advance. If a Client chooses to pay fees
in advance and the account terminates, Greer Anderson will refund a proportionate part of any
prepaid fee.
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Green Anderson Capital, LLC Brochure
Greer Anderson may, in the future, serve as the general partner or otherwise sponsor, manage, or
provide advisory services (directly or through affiliates) to other private investment funds or
people or entities with fee schedules similar or dissimilar to those set forth above.
Alternative Fee Arrangements
Greer Anderson may, at its discretion, be willing to consider and negotiate fee arrangements that
are not based on a percentage of assets under management. Greer Anderson may also waive fees
for certain Clients.
No Compensation from the Sale of Securities
Neither Greer Anderson nor any of its Advisory Persons (as defined below) accepts
compensation for the sale of securities or other investment products. However, see Item 14
below for information about compensation that certain persons receive for marketing the GAC
Funds. For purposes of this Form ADV Part 2A, “Advisory Person” means “any partner, officer,
director (or other person occupying a similar status or performing similar functions), or
employee of Greer Anderson, or other person who provides investment advice on behalf of Greer
Anderson or has access to Greer Anderson’s non-public investment recommendations and is
subject to the supervision and control of Greer Anderson”.