Item 5 Fees and Compensation
Hein Park or its affiliates generally receive management fees and performance fees (or allocations) in connection with
the investment advisory services it provides to the Funds. Management fees and performance fees payable to Hein
Park by a Fund are generally established by Hein Park at the time of the establishment of a Fund and may vary among
each Fund or classes within a Fund. Specific details of such compensation and its method of calculation are set out
in the investment management agreements and/or underlying governing documents (including offering materials) of
the relevant Fund. Management fees generally are calculated and payable quarterly in advance based on a Fund’s
assets on the first business day of such quarter, typically at annual rates ranging from 1% to 1.5% of the Fund’s assets.
Performance fees and allocations generally are calculated and payable or reallocated annually, typically in an amount
that ranges from 15% to 20% of the cumulative net profit of an account during the relevant year reduced by a loss
recovery account balance, if any. Management fees and performance fees are deducted from each Fund’s assets and
are not billed separately.
The amount and method of the calculation of a performance fee or allocation, and of a management fee, may be
changed by Hein Park, or the applicable board of directors or general partner of a Fund, at any time with the consent
of the Fund’s investors or limited partners. Hein Park, or the applicable board of directors or general partner of a
Fund, can waive, reduce or calculate differently the management fee or performance fee or allocation applicable to
any investor without the consent of, or notice to, any other investor.
In addition to a management fee and performance fee or allocation, a Fund will bear its own expenses as disclosed in
the respective Fund’s offering documents. For Funds in a master-feeder structure, a feeder Fund will also bear its
applicable share of these expenses as an investor in the master Fund. These expenses will include expenses incurred
directly or indirectly by a Fund as well as expenses that are incurred by the Fund’s general partner, board of directors,
master Fund advisory committees, Hein Park or any of their affiliates, which expenses, in the sole discretion of the
general partner or board of directors, are allocable to, or associated with, the activities of the Fund. The expenses are
discussed below.
Operating Expenses
A Fund will pay its own operating expenses, including its share of these expenses as an investor in a master Fund, if
applicable. These expenses will include a management fee and all operating expenses of the Fund, including, without
limitation, as follows:
Investment and Trading Expenses.
A Fund will bear its investment expenses, including but not limited to, fees and expenses related to investments and
potential investments, brokerage commissions, prime broker fees, initial and variation margin, interest and dividend
expense, margins, option premiums, brokerage, floor, exchange, and clearinghouse commissions, memberships and
fees, other transaction costs and expenses, currency hedging expenses, expenses relating to short sales, obligations
incurred in connection with credit arrangements (including repayment obligations, interest, fees and expenses in
connection with such credit arrangements), clearing and settlement charges, investment-related travel expenses
incurred by personnel of Hein Park, professional fees (including expenses of senior advisors, operating partners,
consultants, investment bankers, attorneys, accountants and other experts as well as their respective travel, meals,
accommodation and entertainment expenses) relating to the operation of the Fund or to the management of its
investments, transmission costs, expenses associated with purchasing, licensing and subscribing for computer software
and hardware relating to the operation of the Fund (including, without limitation, research, portfolio tracking,
analytics, customer relationship management, project management, expense management, accounting, document
management, and trading software such as Bloomberg), trade support services including, but not limited to, pre- and
post-trade support software and related support services, appraisal costs, valuation expenses, due diligence costs,
research and market data costs, publications, periodicals, data base services and data processing that are directly related
to research activities on behalf of the Fund, risk analysis and risk reporting by third parties and risk-related and
consulting services, fees of providers of specialized data and/or analysis as to specific companies, sectors or asset
classes in which the Fund has made or intends to make an investment, and related expenses.
Legal and Compliance Expenses.
A Fund will bear legal fees and related expenses incurred in connection with the Fund’s investments or proposed
investments or the ongoing existence of the Fund, including legal costs and related expenses of indemnified persons
that may be payable by the Fund pursuant to any indemnification obligations of the Fund, legal and compliance third-
party fees and expenses allocated to the Fund to the extent such services are related to, or otherwise benefiting, the
organizational, operational, investment or trading activities of the Fund, legal fees and other expenses incurred in
connection with regulatory filings required of the Fund or necessitated by its operations or investments, including
without limitation Schedules 13G or 13D (but excluding Form ADV, Form PF, Form CPO-PQR and Schedule 13F,
if applicable), registration fees and expenses incurred in connection with Hein Park’s compliance with AIFMD and
MIFID II and the equivalent legislation in the UK, if applicable, litigation and threatened litigation, if any, expenses
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