Fees and Compensation — Form ADV Part 2A (3/31/2011)
[Brochure]
Item 5 – Fees and Compensation
Private Pooled Investment Vehicles
Pergament generally receives a management fee ranging from 1% to 2% per annum of assets
under management, generally charged monthly in advance in accordance with the Private
Funds' PPMs. Fees charged in advance will be refunded for partial periods if the advisory
relationship with a Client or an investor in a Private Fund is terminated within a calendar
month. If any fees are charged in arrears, they will be prorated for any partial period of
investment advisory service.
Limited Partners also pay fees in addition to those fees shown above. For a complete list of
potential fees please see the Fund’s Private Offering Memorandum. Performance-based fees
are discussed further in Item 6.
Separate Accounts
Pergament serves as a discretionary manager on several separately managed accounts for
both individuals and family trusts and entities. We typically charge a management fee of
1.5% based on total assets managed. Generally, this fee is charged quarterly in arrears, and
thus, such fees will be prorated for any partial period of investment advisory service.
Pergament reserves the right to negotiate fees. Certain clients pay more or less than others
depending on certain factors, including but not limited to, the type and size of the account,
the level and complexity of service provided, and the total amount of assets managed for a
single client.
Clients may pay other fees as such as brokerage commissions, transaction fees, custodial fees
and transfer taxes, and other fees and taxes charged to brokerage accounts and securities
transactions.
All Pergament client assets are held by a “qualified custodian,” as that term is defined in
Advisers Act Rule 206(4)-2, to the extent required by law, and Pergament will bill such
custodians as directed by clients.
Out-of-Pocket Expenses. In addition to fees, clients may be responsible for certain out-
of-pocket expenses for reasonable and direct costs incurred by Pergament on the client’s
behalf. These out-of-pocket expenses may include travel costs and expenses incurred by
Pergament in connection with meetings, copying, long-distance telephone calls, facsimile
charges, messenger and/or express delivery services, and special research items. Pergament
will provide its clients with an invoice containing a detailed description of such expenses.
Account Minimums and Types of Clients — Form ADV Part 2A (3/31/2011)
[Brochure]
Item 7 – Types of Clients
Pergament provides directly discretionary and nondiscretionary investment advice to high-
net worth individuals, families and their related entities, such as trusts and private
foundations, which includes the Pergament family. Additionally, Pergament serves as an
adviser to the Private Funds.
Pergament’s basic fee schedules for investment advisory services for separately managed
accounts are generally subject to an initial asset base of $500,000. However, fees and
minimum initial set base amounts may be subject to modifications and negotiations to
accommodate special client requirements. Each Private Fund has a minimum investment
requirement for investors as set forth in the Private Fund’s respective offering documents.
Investors also are required to meet certain eligibility standards as set forth in the Private
Fund’s respective offering documents.