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
Malleus is paid an investment management fee (“Management Fee”) per annum of the net asset value
of the applicable Funds. The Management Fee is normally charged on the first day of each quarter and
is paid in advance based on the applicable Fund’s net asset value on the first day of such quarter. The
Fund will also pay Malleus asset-based amounts (the “Asset-Based Amounts”) equal to 0.3125%
(1.25% per annum) or 0.375% (1.5% per annum), depending on class share type.
Malleus Capital, LP Form ADV Part 2A Brochure
Other Types of Fees and Expenses
Malleus is authorized to incur and pay in the name and on behalf of the Funds 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 bear all other expenses, which include, without limitation, the following expenses incurred
by or allocable to the Funds: (i) expenses related to the research, execution and monitoring of actual
and prospective investments (whether or not consummated) and the consummation of
investments, including, without limitation, the following: third-party investment sourcing fees; fees
and expenses of and related to obtaining research and market data (including, without limitation,
data subscriptions (such as Bloomberg) and any information technology hardware, software or other
technology incorporated into the cost of obtaining such research and market data); due diligence
expenses including, without limitation, consulting and appraisal fees; investment- and research-
related travel expenses; outsourced trading provider fees; brokerage and prime brokerage fees,
commissions and expenses (including the costs of negotiating, documenting and/or amending
agreements with prime brokers, ISDAs and other agreements with trading and financing
counterparties); expenses relating to borrowing securities to be sold short; clearing and settlement
charges; custodial fees and expenses; bank service fees; interest expenses and other borrowing
costs; fees and expenses of proxy research and voting services; broken deal expenses; and fees and
expenses of third-party professionals, including, without limitation, consultants, investment
bankers, attorneys and accountants; (ii) organizational and offering fees and expenses, including
preparation and amendment of Fund documents; fees and expenses of the Investment Manager
incurred in connection with “world sky” matters and private placement regimes, including the
European Alternative Investment Fund Managers Directive, and Form D and blue sky and similar
fees and expenses; expenses incurred in connection with negotiating, documenting and complying
with provisions of any side letter agreement with investors; and all fees and expenses (including
attorneys’ fees) incurred by the Investment Manager, the General Partner and their respective
affiliates in connection with negotiating, documenting and implementing the Strategic Investor
Agreement; (iii) operational expenses, including, without limitation, the following: fees and
expenses relating to information technology hardware, software or other technology (including,
without limitation, 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, facilitate compliance with the rules of any self-regulatory
organization or applicable law (including, without limitation, reporting obligations and obligations
arising from laws and regulations applicable to the Investment Manager) in connection with the
activities of the Funds, and facilitate and manage the execution of securities or otherwise manage the
Funds (including, in each case, Bloomberg terminals, portfolio management and accounting systems
and order management systems); fees and expenses of third-party risk management products,
models and services; third-party administrative fees and expenses, including fees and expenses of
the Administrator (as defined below) and any middle office and/or back office service provider; fees
and expenses incurred by the Investment Manager in registering with the SEC as an investment
adviser under the Advisers Act and the development, documentation, implementation, review and
testing of related procedures as well as ongoing fees and expenses incurred in connection
therewith, including, without limitation, costs of consultants, valuation service providers, attorneys,
accountants and tax preparers; third-party audit and tax preparation expenses; the Funds’ allocable
share of insurance expenses, including, without limitation, premiums for cybersecurity insurance
Malleus Capital, LP Form ADV Part 2A Brochure
and liability insurance (including directors and officers liability insurance and errors and omission
insurance) covering the Funds, the General Partner, the Investment Manager and the members,
partners, officers, employees and agents of any of them, and each member of the Governance
Committee (even if such insurance covers conduct for which indemnity would not be available from
the Funds); fees and expenses associated with Investor and Director meetings (including, without
limitation, travel, lodging and meal-related expenses); Director fees (including registration fees); fees
...