Pacifica Capital Investments LLC

Item 5: Fees and Compensation

Individually Managed Accounts
PCI’s clients that meet the definition of a “Qualified Client” in Rule 205-3 under the Investment
Advisers Act of 1940 generally are charged a Base Management Fee and a Performance Fee.
“Qualified Clients” generally include those with:
   ▪   A net worth of $2.2 million or more; and/or
   ▪   At least $1,100,000 under PCI’s management.
The annual Base Management Fee for Qualified Clients is up to 1.0% of the value of a client’s
account. Accounts are valued as of the end of each calendar year for purposes of calculating the
Base Management Fee.
The annual Performance Fee will not exceed 20% of the annual increase in the value of the
client’s account in excess of the “Minimum Annual Return” (which is explained further below).
Clients do not pay a Performance Fee except to the extent that the actual cumulative return on
the client’s account from its inception exceeds the cumulative Minimum Annual Return on that
account for the same period of time.
The “Minimum Annual Return” is a hypothetical amount that results from application of the
“Minimum Annual Rate of Return” to the client’s account. The “Minimum Annual Rate of Return”
is the yield on the ten-year United States Treasury bond as of the first day of each calendar year,
effective for all of that year.
Clients that do not meet the definition of “Qualified Client”, or who do not prefer a Performance
Fee structure, are charged only the Base Management Fee, which ranges from .25% to 2%
annually, depending upon the factors discussed below. If a client utilizes leverage, the firm’s fees
will be billed on the gross balance in the portfolio. The use of leverage creates a conflict of
interest in that the adviser firm has an economic incentive to utilize leverage as it inflates the
market value upon which the adviser's fees are calculated, thereby increasing the adviser's fee
revenue.
All fees charged by PCI, including those charged to “Qualified Clients,” may be negotiated and
vary among clients depending on the following factors:
   ▪   Size of the account
   ▪   Likelihood of the size of the account increasing over time
   ▪   Client’s relationship to PCI and/or its owners

                   Part 2A of Form ADV: Pacifica Capital Investments, LLC Brochure

   ▪   Other subjective factors
The Base Management Fee and the Performance Fee are charged annually in arrears. Fees are
pro-rated with respect to accounts that have been opened or closed during the year. Fees also
are pro-rated for capital contributions to or withdrawals from accounts at any time other than
on the first or last day of any calendar year.
At the end of each fiscal year, PCI sends each client an invoice requesting payment of all fees. If
PCI does not receive payment within 14 days of sending its invoice, PCI deducts its fees from the
client’s account. Thus, by choosing whether to submit payment in response to PCI’s invoice or
permit PCI to deduct its fees from their accounts, clients select the method by which they make
payment each year.
In addition to the Base Management Fee and Performance Fee, client accounts are assessed
brokerage and transaction charges with respect to activity in the account. These charges are
paid to the account custodian (generally, Schwab Institutional) for effecting transactions, and
may be higher or lower than transaction charges or commissions the client may pay at other
broker-dealers. For PCI’s client accounts maintained in its custody, Schwab generally does not
charge separately for custody but is compensated by account holders through commissions or
other transaction-related fees for securities trades that are executed through Schwab or that
settle into Schwab accounts. Please refer to the section below entitled, “Brokerage Practices” for
additional information.
Although PCI prefers an account minimum of $250,000 or higher for each client account,
amounts may be negotiated on a case-by-case basis.

Private Fund Fees
PCRE manages several private funds. Please see Item 4 of this brochure for a list of the funds.
Generally, fees are paid to PCRE, entities related to its executives, and other related persons
based on a cash flow split above a certain hurdle. Please see Item 6 for additional disclosure on

Item 7: Types of Clients
PCI generally provides investment advice to individuals (including high net worth individuals),
pension and profit sharing plans, charitable organizations, corporations, and the Investment
Ventures.
Although PCI does not have any minimum required investment, it generally does not manage
accounts with initial deposits less than $250,000. In addition, the remaining Investment Ventures
each has a minimum investment requirement of $50,000. PCI often waives these minimum
investment requirements.