Item 5: Fees and Compensation
The fees applicable to each of the Funds are set forth in detail in the corresponding Offering
Documents. A brief summary of such fees is provided below.
Management Fee
Lijaro Asset Management (UK) LLP is paid an investment management fee (“Management
Fee”) for each month equal to a twelfth of the result of the applicable Management Fee Rate
multiplied by the net asset value of each series of Shares as of the end of such month (before
taking into account the estimated accrued Incentive Fee, if any). The portion of the
Management Fee applicable to a series of Shares will be charged to its corresponding series
of Master Fund Shares and paid out of the Master Fund’s accounts.
The Management Fee is 1.75% per annum for the main asset class, the A Share Class (Main).
The Investment Manager, in its sole discretion, may waive or modify the Management Fee for
any Investor.
Incentive Fee
Lijaro Asset Management (UK) LLP is paid an “Incentive Fee” equal to the result of the
applicable Incentive Fee Rate multiplied by the amount by which the Adjusted NAV of a series
of Shares exceeds its Prior High NAV for the main asset class, the A Share Class (Main).
The Incentive Fee will be paid as of 31 December of each year, and will also be paid with
respect to the relevant Shares on such other dates that there is a redemption of Shares, a
transfer of Shares resulting in a change in beneficial ownership, the termination of the
Investment Management Agreement and upon the winding-up of the Fund or the Master
Fund.
The Incentive Fee is 20% per annum, for the main asset class, the A Share Class (Main).
Other Types of Fees or Expenses
The Fund will bear its own expenses and its pro rata share of the expenses of the Master Fund
and any trading vehicle as more fully described herein.
Lijaro is responsible for and shall pay, or cause to be paid, all of their own ordinary
administrative and overhead expenses, including, without limitation, all costs and expenses
related to rent, furniture, fixtures, equipment, office supplies, clerical expenses and all
salaries, bonuses and benefits paid to, or on behalf of, personnel of the Firm.
The Funds bear all other expenses, which include, without limitation, the following expenses
incurred by or allocable to the Funds: (a) organizational and offering expenses; (b) expenses
associated with all investments and transactions considered, evaluated and/or consummated
by the Funds, including, without limitation, those expenses incurred before the initial closing
of the Funds, including, without limitation, expenses associated with sourcing, negotiating,
investigating, researching, financing and structuring of investments and potential
investments, whether or not consummated, including, without limitation, third-party
research, data, analytics, modeling, structuring, pricing, execution and other third-party
information systems, software and service fees (including, without limitation, the expenses
with respect to data feeds, subscriptions, expert networks, political intelligence providers, and
reports); (c) research-related computer hardware and software expenses, including, without
limitation, Bloomberg terminals; (d) the Funds’ pro rata share of the Firm’s order management
system, portfolio management system and any other software used for accounting and/or
monitoring of the portfolio; (e) expenses associated with holding, financing, monitoring,
hedging, maintaining and disposing of all investments of the Funds and all transaction and
other costs associated therewith; (f) travel and related expenses associated with investments
and potential investments; (g) professional fees associated with investments and potential
investments, including, without limitation, consulting, due diligence, accounting, valuation,
financial, legal, and other advisory fees and expenses; (h) transaction fees, brokerage
commissions, custodial fees, clearing and settlement charges and similar fees and expenses
associated with the acquisition, disposition and settling of investments and potential
investments; (i) expenses associated with legal and regulatory filings of the Funds (including,
without limitation, pursuant to Section 13 and 16 of the Securities and Exchange Act of 1934,
as amended (the “Exchange Act”)) and the Funds’ pro rata portion of the expenses associated
with preparation of the Firm’s Form 13F, Form 13H and Form PF, and any other similar filing
in any other U.S. or non-U.S. jurisdiction; (j) administrative, custodial, appraisal, valuation,
legal, regulatory, compliance, consulting, advisory and similar fees and expenses associated
with the Funds’ operations, investments and transactions, including, without limitation, fees
and expenses of the Funds’ administrator; (k) expenses incurred in connection with
responding to requests or inquiries from any U.S. federal, state, local or non-U.S.
governmental entity or authority, regulatory body or self-regulatory organization and all
extraordinary expenses; (l) broken-deal, failed transaction, break-up and similar fees, costs
and expenses, if any; (m) costs and expenses of leverage or any other borrowings of the Funds,
including, without limitation, interest charges and fees; (n) expenses incurred in the collection
of monies owed to the Funds, as applicable; (o) auditing and accounting expenses of the
Funds, including, without limitation, expenses associated with the preparation of financial
statements, tax returns and Schedules K-1 and the fees and expenses of the auditor; (p) any
entity level taxes, fees or other governmental charges on the Funds, including, without
limitation, any withholding taxes not due to the status or noncompliance of a particular
Investor; (q) costs and expenses associated with investor communications and reports and the
delivery thereof to investors; (r) the costs of service providers or software to measure or
...