Fees and Compensation
The PBP Funds pay PBP a fixed management fee payable quarterly (prorated for partial
quarters) in advance based on the total market value of the assets of each investor’s capital
account or attributable to each class or sub-class of shares, as applicable. In addition, the
PBP Funds pay an affiliate of PBP a performance-based incentive allocation based on net
capital appreciation (over the management fee and subject to a loss carryforward
mechanism). PBP may waive or reduce the management fee and incentive allocation for
investors that are members, principals, employees or affiliates of PBP, relatives of such
persons and certain large or strategic investors. In addition, certain initial investors
designated as founding limited partners or founding shareholders are subject to a lower
management fee and incentive allocation. A pro rata portion of any management fee paid
in advance will be returned to any investor that withdraws prior to quarter-end. The fees
and allocations applicable to each PBP Fund are set forth in detail in each PBP Fund’s
offering memorandum.
Separately managed account clients that we may manage are charged fees on a case-by-case
basis, which may include management fees and/or performance-based fees.
Management Fee and Incentive Compensation
Generally, the PBP Funds pay PBP a quarterly management fee for investment advisory
services of up to 1/4 of 1.50% (1.05% on an annualized basis) or 0.375% per quarter, of each
investor’s capital account or the net asset value of each class or sub-class of shares held by an
investor, as applicable, at the beginning of each such quarter. If a new client account is
established during a quarter or a client makes an addition to its account during a quarter, the
management fee will be charged as of the effective date of the investment management
agreement or the date of the additional contribution based on the value of the assets as of the
applicable date and will be prorated for the number of days remaining in the quarter.
PBP does not deduct the management fee from client accounts; rather, PBP bills client
accounts.
Generally, at the end of each fiscal year or upon the complete redemption of an investor, an
affiliate of PBP is entitled to an incentive allocation in an amount of up to 17.5% of the net
capital appreciation or the increase in the net asset value of each class or sub-class of shares
for such fiscal year (which includes both realized gains and losses and unrealized
appreciation and depreciation of securities held in such PBP Fund’s portfolio) after
deducting the management fee for such fiscal year, subject to a loss carryforward
mechanism.
Generally, separately managed account clients that we may manage are charged fees on a
case-by-case basis, which may include management fees and/or performance-based fees,
and are described in the advisory contracts we enter into with such clients.
Additional Fees and Expenses
In addition to paying management fees and incentive compensation, each client account will
bear its own expenses as specified in the client’s offering documentation or investment
management agreement. Expenses payable by client accounts may include, but not be limited
to, fees paid to PBP, legal, risk management, auditing, accounting, consulting and other
professional expenses, administration expenses, research expenses (including research-related
travel) and investment expenses such as commissions, interest on margin accounts and other
indebtedness, custodial fees, bank service fees, regulatory compliance-related monitoring and
filing fees and expenses (including, without limitation, the preparation and filing of Form PF),
insurance (including, with respect to the PBP Funds, the PBP Funds' pro-rata share of D&O
and E&O insurance) and other expenses related to the purchase, sale, management or
transmittal of client assets.
The client accounts may be invested in money market mutual funds, Exchange Traded Funds,
or other registered investment companies. In these cases, the client accounts bear their pro
rata share of the management fee and other fees of such fund, which are in addition to the
management fee paid to PBP. Peace Bridge Domestic Fund, LP and Peace Bridge Offshore
Fund, Ltd. each bear their pro rata share of the expenses of Peace Bridge Master Fund, LP. In
addition, the client accounts incur brokerage and other transaction costs. Please refer to Item