Item 5. Fees and Compensation
Latigo is paid the following fees for its management of the Funds: (1) a management fee that ranges from
1.0% to 2.0% (annualized) that is calculated and payable quarterly in advance based on either account
balance or drawn capital, depending on the fund. Management fees exclude, in each case, the accrual of
any performance allocation to Latigo or its affiliates. In addition to the management fee, Latigo or its
affiliates receives a performance allocation that is calculated and payable annually that ranges from 15% to
20% (annualized) for all Funds except Latigo Partners Special Situations Opportunity Master Fund, L.P.
and its feeder fund, Latigo Partners Special Situations Opportunity Offshore Fund, L.P., for which Latigo
or its affiliates receives a carried interest that ranges from 17.5%-20% after a preferred return. Fees and
terms are not negotiable for the Funds except in limited circumstances at Latigo’s sole discretion.
Management and performance fees are discussed in more detail in each of the Funds’ governing documents
or the individual investment management agreement with each separately managed account client.
Latigo does not have a standard fee schedule for separately managed accounts or co-investment vehicles as
they are uniquely negotiated with each client.
Management and performance-based fees are waived, reduced, or calculated differently with respect to
certain Investors and Clients, including, without limitation, Investors or Clients that are officers, directors,
members, partners, or employees (collectively the “Employees”) of Latigo, members of the immediate
families of such persons, and trusts or other entities for their benefit. Latigo also has the ability to waive
certain fees related to co-investment opportunities for certain Clients. See Brokerage Practices below for
further information related to co-investments.
Latigo is responsible for its own general operating and overhead costs, including salaries, employee
benefits, office rent, non-investment-related travel expenses of its personnel and other general overhead
costs. The Funds and separate management accounts bear their own investment related expenses including
research, professional fees, administrative expenses, accounting, legal, audit and tax preparation, insurance,
organizational, pricing expenses, and investment expenses such as commissions, custodial fees, bank
service fees and other expenses related to the purchase, sale or transmittal of client assets. Latigo pays, and
may pay in the future, for insurance expenses attributable to certain separate managed accounts due to
unique negotiations with each client. Similarly, co-investment vehicles will pay for research. Fees are
allocated on an investment specific basis or pro-rata to all funds, and, if applicable separately managed
accounts and co-investment vehicles, based on assets under management or holdings of a specific
investment. There could be discrepancies in the pricing of the same security held by the Funds and
separately managed accounts because of different administrators or custodians valuing a security.
Furthermore, Latigo maintains responsibility for the valuation of securities held by the Funds and not of
those held by separately managed accounts. As a result, valuation discrepancies may impact the allocation
of certain expenses, such as research, when the pro-rata allocation is based on assets under management.
Latigo has established procedures to monitor pricing differences between accounts and to mitigate any
conflicts resulting from such pricing differences.
Latigo and its affiliates have the ability to select the Funds’ third-party service providers, some of which
could be related to current or potential investors in the Funds. Latigo does not believe these relationships with
third-party service providers present a conflict, considering Latigo’s policies and procedures that include
conducting initial and ongoing due diligence of Latigo’s and its Funds’ service providers.