ITEM 5 - FEES AND COMPENSATION
The Advisory Contract governs the relationship between the Firm and each Fund,
including the fee that the client pays the Firm for investment advisory services.
Compensation for such services is generally negotiated for each Fund and DIV and is
particular to each Advisory Contract.
The Firm charges advisory and management fees based on a percentage of equity value
and/or client capital commitments and contributions for the Fund, and invoices each Fund
that it serves as investment adviser based on the advisory fee method and timing
described in the applicable Advisory Contract agreement.
The Chief Compliance Officer ensures that the Firm calculates the advisory fee in the
manner described in its Advisory Contract(s).
Advisory fee installments for any period other than a full calendar quarter shall be
adjusted on a pro rata basis according to the actual number of days elapsed.
Fees are not collected for services to be performed more than three months in advance.
The Firm refunds any pre-paid fees that have not been earned at the termination of a
contract with a client Fund. However, when returning pre-paid fees, the Firm may deduct
certain reasonable costs.
The advisory fee is not inclusive of all the fees which a Fund’s investors may bear. For
example, beyond advisory services, the Fund may retain the Firm (or an affiliate) to
provide other related services with respect to each Fund’s real estate investments
(including, property management, leasing, tenant improvement, construction
management, development and other property-related services). The charges incurred by
the Fund in connection with such services are at rates which the Firm believes, based on
its market experience, are no less favorable than the rates that would be charged for
similar services in the applicable market. In addition, the Fund investors bear indirectly a
variety of expenses associated with the formation, organization and operation of, and if
applicable, sale of interests in, the Fund, including, without limitation:
• amounts payable by the Fund in connection with borrowing activities (including
borrowings from affiliated entities);
• expenses relating to the evaluation, acquisition, ownership, leasing, operation,
maintenance, improvement, development, renovation, sale, hedging or financing
of the Fund’s real estate investment(s);
Part 2A of Form ADV: Firm Brochure HIMCO HGF I, LLC
• fees, costs and expenses in connection with the investigation and monitoring of
investment opportunities;
• legal and accounting expenses;
• auditing expenses;
• appraisal expenses;
• taxes payable by the Fund; and
• damages and other litigation expenses.
Each Fund or its property owning subsidiary or subsidiaries may be charged for platform
administration services provided by the Firm’s affiliates to the extent set forth in the
Fund’s governing documents. Any such affiliate-provided services will be provided at
reasonable rates which the Firm believes, based on its market experience, are no less
favorable than would customarily be charged by a third party. Alternatively, the Firm
may engage third parties to provide any such services in lieu of having them provided by
affiliates. Such costs shall be Fund expenses to the extent set forth in the Fund’s
governing documents.
No supervised person of the Firm is compensated for the sale of securities or investment
products.
The Funds’ private placement memorandums (“offering materials”) include further
details on fees, compensation and related matters.