Item 5: Fees and Compensation
Lykos receives compensation based on assets under management and performance. The fees applicable
to each of the Funds are set forth in detail in the corresponding Governing Documents. All Investors
should review the Governing Documents of the relevant Fund in conjunction with this brochure for
complete information on the fees and compensation payable with respect to that particular Fund. A brief
summary of such fees is provided below.
Management Fee
The Clients will pay to the Firm a fee for its services (the “Management Fee”) that is negotiated and
agreed upon in that Client’s respective Governing Document.
“Management Fee Rate” ranges from 1.0 - 1.5% per annum for founders class interests in the Funds.
The Management Fee is calculated on a quarterly basis and paid in advance by multiplying the
Management Fee Rate by the balance of each capital account of an Investor as of the beginning of such
fiscal quarter (before taking into account the estimated accrued Incentive Allocation, if any). The
Management Fee Rate for the Sub-Advised Funds, ranges from 1.0 – 1.5% per annum and is paid either
monthly in arrears or quarterly in advance as detailed in each Sub-Advised Fund’s Governing
Document.
For the Funds, the Management Fee is not generally negotiated separately with each Investor; however,
the Firm or its affiliates can negotiate, waive or agree to a reduction of amounts of the Management
Fees with individual Investors at its discretion in consideration of the size of such Investor’s capital
commitment or other factors. In the sole discretion of the Firm, the Management Fee has in the past and
may in the future be waived, reduced or calculated differently for Lykos-related Investors. For a
discussion of potential conflicts of interest, please see “Item 6. Performance-Based Fees and Side-by-
Side Management.”.
Other Types of Fees or Expenses
Lykos is authorized to incur and pay in the name and on behalf of the Clients all expenses which they
deem necessary or advisable.
The Firm 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 will bear its own expenses, the expenses of any intermediate entity through which it invests,
and its pro rata share of the other vehicles expenses, including the following: (i) the Management Fee;
(ii) expenses related to the research, due diligence, financing, monitoring and disposition of actual and
prospective Fund investments, whether or not such investment is consummated, including the
following: third-party investment sourcing fees (including performance-based fees); fees and expenses
related to obtaining research and market data (including any information technology hardware, software
or other technology incorporated into the cost of obtaining such research and market data, and including
fees and expenses related to obtaining, processing and analyzing research or market data that may be
considered “big data” or “alternative data”, including fees and expenses related to performing due
diligence on potential providers of any of such research or market data services); due diligence
expenses, including consulting and appraisal fees; brokerage, prime brokerage and futures commission
merchant fees, commissions and expenses (including fees, commissions and expenses of any outsourced
trading desk); expenses relating to block trades; expenses relating to short sales; clearing and settlement
charges; custodial fees and expenses; bank service fees; interest expenses and fees related to financings
or refinancings; fees and expenses of proxy research and voting and class action-related services; (iii)
the Funds’ direct or indirect pro rata share of any compensation payable in connection with the
Lykos Global Management, LP Form ADV Part 2A
management of any Private Investment by an unaffiliated third party or management team, which may
include both asset-based fees and performance-based fees (which, for the avoidance of doubt, will not
reduce the Management Fee or Incentive Allocation payable or allocable to the Firm and the General
Partner, respectively); (iv) operational expenses, including the following: fees and expenses relating to
information technology hardware, software or other technology (including costs of software licensing,
implementation, data management and recovery services and custom development) used to research
investments, evaluate and manage risk, facilitate valuations, facilitate accounting functions and/or
facilitate compliance with the rules of any self-regulatory organization or applicable law (including
reporting obligations), facilitate and manage the order execution of investments or otherwise manage
or monitor investments, such as Bloomberg terminals, portfolio management systems, risk management
systems and order management systems; fees and expenses of third-party risk management products,
models and services; fees and expenses of any outsourced trading firms; (v) fees and expenses of third-
party professionals, including consultants, valuation service providers, attorneys, accountants and third-
party administrative fees and expenses (including any “shadow” administrator) and including the costs
of engaging or appointing a Money Laundering Reporting Officer, a Deputy Money Laundering
Reporting Officer and an Anti-Money Laundering Compliance Officer; (vi) the costs of any litigation
or investigation involving activities of the Funds; (vii) taxes and third-party audit and tax preparation
expenses; (viii) insurance expenses, including premiums for cybersecurity insurance and liability
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