Item 5. Fees and Compensation
Below is a discussion of how Lake Bridge is typically compensated in connection with providing
advisory services to its Clients. Because Lake Bridge may enter into different fee arrangements on
a Client by Client basis, please ensure you obtain and carefully read and study all applicable
offering documents for any Fund or Fund(s) for which Lake Bridge provides investment advisory
services.
Distribution Fee
The Funds typically pay a fixed Distribution Fee (deducted directly from the Funds’ account) to
the General Partner quarterly in advance. The Distribution Fee may be increased, but not
decreased, for any quarter, with Limited Partner consent. For additional information, please
refer to the specific offering documents for each Fund.
Performance Allocation
Lake Bridge or its affiliates typically receive Carried Interests allocations from each of the Funds
of up to 7% of distributable cash of each portfolio investment. Carried Interests allocations may
be subject to hurdles and/or claw-backs, depending on, among other things, the strategy of the
relevant Funds and market returns. For additional information, please refer to the specific
offering documents for each Fund which may contain different carried interest provisions and
payment structures than that described above.
Organizational Expenses
The Funds will typically bear all costs and expenses incurred in connection with the organization
of the Fund, including legal and accounting fees, printing costs, travel and out-of-pocket
expenses, and all costs and expenses incurred in connection with the offering of Interests. Such
expenses may be subject to certain limitation that are more fully explained in each Funds’
applicable offering documents. For additional information, please refer to the specific offering
documents for each Fund which may contain different expense provisions and payment
structures than that described above.
Partnership Expenses
A Fund will typically be responsible for all expenses relating to its own operations including,
but not limited to, ongoing expenses such as accounting, administrative, custodial, legal, audit,
regulatory or compliance, government filing fees, and other similar fees and expenses related to
the maintenance and/or liquidation of the Funds and the Funds’ portfolio property and all
applicable taxes related to those expenses; expenses related to approved investment
opportunities, such as legal, brokerage, travel, consulting and due diligence; and transaction
costs related to the disposition of the Funds’ portfolio property. For additional information,
please refer to the specific offering documents for each Fund which may contain different
expense provisions and payment structures than that described above.
General Partner Expenses
The General Partner shall bear its own costs and expenses, including its general overhead
expenses such as rent, furniture and office equipment, and the salaries and benefits of employees.