Item 5 FEES AND COMPENSATION
With respect to each type of Advisory Client, King Street and certain of its affiliates receive management
fee and performance compensation, as described below. King Street complies with Rule 205-3 of the
Advisers Act, to the extent required by applicable law. Subject to the relevant Governing Documents, King
Street has waived, and may in the future in its sole discretion waive, all or any portion of the management
fee and/or performance compensation with respect to an Advisory Client or any investor in a Fund
including, but not limited to, King Street, its affiliates and any of their respective current or former
principals, members, directors, officers, partners, employees, the family members of any of the foregoing
and any trusts or other vehicles for the benefit of such persons and any charitable trust, foundation or similar
entity established by any such persons. Additionally, King Street and its affiliates have in the past waived,
and may in the future in its sole discretion waive or modify all or a portion of the management fees, incentive
compensation or other remuneration in respect of Other Persons (as defined in Item 8). Management fees
and performance reallocations are calculated based on the terms set forth in each Advisory Client’s
Governing Documents. Investors should review carefully the specific terms set forth in the relevant
Advisory Client’s Governing Documents.
In the event that transaction, advisory, asset servicing, and/or similar fees (including, as applicable, fees
from Rockford Tower CDOs) are received by King Street in connection with a Fund’s investments, King
Street generally intends to offset the portion of those fees received by King Street allocable to the Fund
against the management fees and/or otherwise credit such fees to the Fund’s investors, on a pro rata basis;
however, King Street or other King Street entities or affiliates reserve the right, in certain circumstances, to
retain such fees without offset to management fees or credit to a Fund’s investors, to the extent permitted
under the relevant Governing Documents.
The Funds
Management Fees. The Funds generally pay King Street a management fee that ranges from 1.00% to
1.875%.
• Management Fees for the Hedge Funds range from 1.00% to 1.5% and management fees for
Offshore Investor Funds range from 1.10% to 1.875%, each of which is annually payable in
advance on a quarterly basis.
• Management Fees for Real Estate Funds, Drawdown Funds, and OCS Funds are paid quarterly in
advance, equal to a percentage up to 1.50% of the undrawn and/or drawn capital commitments for
a specified period of time, and thereafter a percentage up to 1.50% of certain invested capital, in
each case subject to reductions and/or adjustments as set forth in the relevant Governing
Documents. From time to time, these Funds expect to offset and reduce amounts otherwise
distributable to investors in order to pay the management fee to King Street (or an affiliate thereof).
As a general matter, the management fees will be payable until all assets of the Fund are distributed,
including during any term extensions, unless otherwise agreed with investors or explicitly
prohibited by the relevant Governing Documents.
• Evergreen OCS Funds generally pay a management fee equal to 1.375% of an investor’s opening
capital account balance (before such balance is adjusted for the effect of management fees and the
accrual of any performance compensation), calculated each calendar quarter and paid each calendar
quarter in arrears. The management fee will typically be adjusted for any capital accounts
established after the first business day of a calendar quarter, but is generally not otherwise adjusted
for events occurring after the commencement of any calendar quarter.
KING STREET®
• The King Street Long/Short Credit UCITS Fund charges a management fee at the Fund level, as
disclosed in the Fund’s governing documents and offering materials. King Street serves as sub-
investment manager and is compensated by the investment manager from the management fee
charged to the Fund. Pursuant to the sub-investment management agreement, King Street’s portion
of the management fee ranges from 0.20% to 1.125% per annum of the Fund’s net asset value,
depending on share class. King Street does not receive additional compensation from the Fund
beyond its agreed share of the management fee.
Performance Compensation. An affiliate of King Street generally receives carried interest distributions
between 10-25% of net profits of the applicable Fund subject to a preferred return, as more fully described
in the Governing Documents of each Fund.
• For Hedge Funds, an affiliate of King Street generally receives performance reallocations equal to
20% or 25% of the net profits (including realized and unrealized gains) of the applicable Fund. The
performance reallocation does not take into consideration gains and losses applicable to Special
Investments (as defined in Item 8) that continue to be held in Special Investment accounts (if any)
as of the performance reallocation date.
• For Real Estate Funds, Drawdown Funds and OCS Funds, an affiliate of King Street generally
receives carried interest distributions of between 10-20% of the net profits of the applicable Fund
subject to a preferred return, as more fully described in the Governing Documents of each Fund.
The carried interest is subject to a potential giveback at the end of life of the Fund if King Street
has received excess cumulative distributions as set forth in the relevant Governing Documents.
...