Item 5 – Fees and Compensation
Wealth Management Fees
Grey Street Capital offers wealth management services for an annual base fee calculated on the
amount of assets under the Firm’s management. This management fee generally varies between
.60% and .20%, and in accordance with the following blended fee schedule:
PORTFOLIO VALUE BASE FEE
For the First $25,000,000 .60%
For the Next $25,000,000 .50%
For the Next $50,000,000 .40%
For the Next $100,000,000 .30%
Above $200,000,000 .20%
The annual base fee is prorated and charged quarterly, in arrears, based upon the average daily
account balance during the month or quarter, as applicable. For the initial period of an engagement,
the fee is calculated on a pro rata basis based on the number of days during the quarter for which
advisory services were rendered. In the event the advisory agreement is terminated, the fee for the
final billing period is prorated through the effective date of the termination and the outstanding or
unearned portion of the fee is charged or refunded to the client, as appropriate. At its discretion, Grey
Street Capital will aggregate the portfolio values to determine the base fee for billing purposes where
the underlying clients maintain a relationship or direct association, including third-party-control
affiliations. Grey Street Capital, as an accommodation, may accept portfolio holdings that were
acquired by investors prior to their onboarding with the Firm (“Legacy Assets”).
The Firm includes cash in a client’s account when determining the valuation for billing purposes. The
Firm may, in its sole discretion, not include cash when determining the fee, especially when the client
has a high percentage of cash for reasons other than the Firm’s investment management decision.
Additionally, for asset management services the Firm provides with respect to certain client holdings
(e.g., held-away assets, accommodation accounts, alternative investments, etc.), Grey Street Capital
may negotiate a fee rate that differs from the range set forth above.
Fee Discretion
Grey Street Capital seeks a minimum fee amount of $50,000 for client account relationships per
annum but, in its sole discretion, may negotiate to charge a lesser fee based upon certain criteria,
such as anticipated future earning capacity, anticipated future additional assets, dollar amount of
assets to be managed, related accounts, account composition, pre-existing/legacy client relationship,
account retention, and pro bono activities. In addition, the Firm may charge a lesser fee for assets
5|Page
where it provides services (such as reporting and analysis for financial planning purposes) but does
not manage the assets on an ongoing basis.
Direct Fee Debit
Clients generally provide Grey Street Capital and/or certain Independent Managers with the
authority to directly debit their accounts for payment of investment advisory fees. The Financial
Institutions that act as the qualified independent custodian for client accounts, from which the Firm
retains the authority to directly deduct fees, have agreed to send statements to clients not less than
quarterly detailing all account transactions, including any amounts paid to Grey Street Capital.
Alternatively, clients may elect to have Grey Street Capital send a separate invoice for direct payment.
Use of Margin
Grey Street Capital only recommends the use of margin for cash needs, not in the management of the
client’s investment portfolio.
Account Additions and Withdrawals
Clients may make additions to and withdrawals from their account at any time, subject to Grey Street
Capital’s right to terminate an account. Additions may be in cash or securities provided that the Firm
reserves the right to liquidate any transferred securities or declines to accept particular securities
into a client’s account. Clients may withdraw account assets on notice to Grey Street Capital, subject
to the usual and customary securities settlement procedures. However, the Firm generally designs
its portfolios as long-term investments, and the withdrawal of assets may impair the achievement of
a client’s investment objectives. Grey Street Capital may consult with its clients about the options and
implications of transferring securities. Clients are advised that when transferred securities are
liquidated, they may be subject to transaction fees, short-term redemption fees, fees assessed at the
mutual fund level (e.g., contingent deferred sales charges), and/or tax ramifications.
Private Fund Fees
Grey Street Capital is entitled to receive asset-based management fees and/or performance-based
compensation from each Fund it manages in accordance with the terms set forth in the Offering
Documents for each Fund.