Item 5 - Fees and Compensation
IEQ’s management fees are negotiable and will vary depending upon factors such as the type
of Client Account, a Client’s relationship with the Firm, the size and complexity of assets
being managed, and the investment strategies being employed by the Firm. Generally, Clients
will be charged an annual management fee of up to 1% pursuant to the Client’s IMA. Certain
Clients have a minimum management fee starting at $6,250 per quarter, although some Clients
negotiate a lower minimum fee.
IEQ Capital, LLC Form ADV Part 2A
Management Fee Methodology
Management Fees in Advance
For most of its Clients, except with respect to the initial quarter, the management fee is based
upon the net asset value (“NAV”) of the assets in the Client Account subject to the
management fee, and will be paid quarterly, in advance, using the prior quarter-end net asset
value of the assets in the Client Account (determined as of the last business day of the prior
calendar quarter), and calculated quarterly using the actual day count methodology. A Client
Account typically becomes subject to IEQ’s management fee beginning the later of (i) the
Effective Date of the IMA, or (ii) the date the last Client’s signature executing the IMA is
received (the “Management Fee Start Date”). A Client Account’s initial management fee
(the “Initial Management Fee”) will be charged as of the last day of the calendar quarter
during which the Account was actually initially funded (the “Initial Management Fee
Date”). The Initial Management Fee will be calculated based on the Net Asset Value of the
assets in the Account as of the Initial Management Fee Date and charged in arrears for the
period beginning on the Management Fee Start Date and ending on the Initial Management
Fee Date, pro-rated for any partial quarter period. The net asset value of the Client Account
will be as reported by the custodian of the Client Account or any other third-party valuation
agent, subject to certain adjustments. For example, dividends declared by an issuer but not
received in the Client Account as of a date on which fees are calculated will be added to the
net asset value of the Client Account, as those amounts will not be included in the assets
reported by the custodian of the Client Account. Similarly, if an issuer’s securities have been
shorted in a Client Account and the issuer is subject to a corporate action that changes the
structure or terms of its securities (such as a stock split, merger or spin-off) then the
custodian of the Client Account will often reflect a zero value for those securities while
waiting for updated pricing information, thus requiring an adjustment to the net asset value of
the Client Account.
In most cases, unless agreed otherwise, if, subsequent to the effective date, a Client enters
into a new investment advisory agreement with IEQ (a “New IMA”) in substitution of an
existing investment advisory agreement (a “Prior IMA”) in connection with a change to the
fee schedule of a Prior IMA, then the fees as set forth in the Prior IMA will continue to be
owed until beginning the first full calendar quarter following the Effective Date of the
agreement, and the fees payable to IEQ under the New IMA will not be owed until the first
full calendar quarter following the effective date of the New IMA.
Management Fees in Arrears
Unless converted to an “in advance” structure, certain Clients, primarily, but not limited to,
legacy clients acquired as part of the acquisition of EPIQ Capital Group in 2024 (collectively,
“Legacy EPIQ Clients”), pay an annual management fee for advising Client accounts of up
to 1% quarterly in arrears based on the average daily balance and actual day count of the
billing period of the Client account balance. Certain accounts managed through platform
arrangement also pay management fees in arrears. If IEQ manages your assets for part of a
quarter, the charge will be prorated.
IEQ Management Fee Discretion
As a result of Client negotiations or otherwise, IEQ maintains, and indeed exercised such
discretion with respect to certain Clients, the discretion to vary, waive or modify the
IEQ Capital, LLC Form ADV Part 2A
management fee methodology and percentile (e.g., adjustments for intra-quarter additions and
redemptions, management fee tiers, asset class tiers) charged to a Client account, not to
exceed an effective rate of 1%, as well as billing practices (e.g., postpone billing). If agreed
upon with a Client, IEQ may also negotiate a management fee based on a fixed dollar amount,
paid quarterly in advance, depending on the financial complexity of a Client’s investment
objectives. Certain clients may enter into fee arrangements pursuant to which the total fee
payable to IEQ is allocated between an investment management fee and a separate fee for
family office services. The allocation is agreed to in writing and is intended to reasonably
reflect the services provided. With respect to multiple Clients from the same
family/household, or who are otherwise related parties (e.g., employees of the same
company), if so negotiated and agreed with such Clients, IEQ will aggregate such Clients’
assets for purposes of calculating management fee subject to any applicable tiered rate. As
mentioned below, as a result of Client negotiations or otherwise, IEQ may also reimburse
certain Clients for expenses related to the operations of such Clients’ accounts, including, but
not limited to, expenses associated with terminating a previous advisory relationship or some
trading related costs.
ERISA Accounts
In any situations where IEQ is deemed to be a fiduciary to advisory Clients that are employee
benefit plans subject to ERISA or plans subject to Section 4975 of the Internal Revenue Code
of 1986 (the “Code”), such as individual retirement accounts (IRAs), IEQ is subject to specific
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