Item 5 – Fees and Compensation
5.A Adviser Compensation
Compensation earned by New Summit for providing investment advisory services to the Funds is
generally comprised of an asset-based management fee (the “Management Fee”) as well as, in certain
circumstances, a performance-based fee. New Summit’s fees are described generally herein and
detailed in the subscription agreements for all Funds that are reviewed and executed by each Investor
in each Fund (each, an “Investor”).
The Funds shall pay to the General Partner throughout the term of the Partnership an annual
“Management Fee.” The Management Fee is payable quarterly in advance, on the first day of each
fiscal quarter. The Management Fee is pro-rated on a daily basis for short fiscal periods, and
additionally pro-rated on a daily basis (payable immediately) at any time that there is an increase in
the aggregate capital commitments.
The New Summit Impact Fund II Fund A and B, the New Summit Impact Fund III Fund A and B,
and New Summit Impact Fund IV, LP pay to the General Partners management fees based on the
time elapsed from the initial investment, the fees for the Private Market Impact Fund do not change
over time. Management Fees charged do not exceed 1.25%, for a full description please refer to the
Subscription agreement. The fee schedule is outlined in detail in the subscription agreements.
Management Fees are based upon a percentage of assets under management, or a fixed fee as
disclosed in each Fund’s subscription agreement. Management fees are prorated, or where necessary
rebated, for any period that is less than a full period.
In addition to the management fees described above, each general partner of a Fund, which is an
affiliate of New Summit, will receive performance-based fees in the form of carried interest that is
paid to the General Partner of each existing New Summit Fund. These distributions are performance-
based fees and are described in the Funds’ subscription agreements.
Income & Impact Fund
The Income & Impact Fund is an LLC and does not have a General Partner. Fees that are earned by
the Income & Impact Fund are paid directly to the LLC. Fees are billed quarterly and in arrears after
the net asset value of the Fund has been calculated.
5.B Direct Billing of Advisory Fees
Management fees are deducted quarterly in advance from all Funds except the Income & Impact
Fund. The Income & Impact Fund is charged quarterly in arrears.
5.C Other Fees and Expenses
New Summit’s management fee is exclusive of transaction fees and other related expenses such as
those incurred in connection with the evaluation, acquisition, monitoring and disposal of
investments, which may be incurred by the Funds. The Funds may also incur certain costs imposed
by administrators, lawyers, insurance providers, auditors, accountants and other third parties.
New Summit’s affiliates will receive additional compensation in the form of a waterfall distribution.
The waterfall distribution is a performance-based fee and is described in the Private Funds’
subscription agreements.
5.D Fees in Advance
Management fees are paid quarterly in advance. New Summit offers pro rata refunds to the Funds
and thus indirectly to any Investors, for any unearned management fees paid in advance.
Income & Impact Fund
Management fees for the Income & Impact Fund are paid quarterly in arrears. New Summit offers
pro rata refunds to the Fund and thus indirectly to any Investors, for any unearned management
fees paid in arrears.
5.E Securities Compensation
As permitted by the Fund offering documents, New Summit receives transaction fees and / or break-
up fees, and in certain instances such fees, or a portion thereof, shall be applied against the
management fee. This presents a conflict of interest and gives New Summit an incentive to
recommend investments based on the compensation received rather than on the Fund’s needs. New
Summit only recommends investments when New Summit believes it is in the best interest of the
Fund and consistent with the Fund’s investment objectives. Additional details regarding such fees
are available in the relevant subscription agreement of the Fund.