ITEM 5 -- Fees and Compensation
Currently, Phaeacian Partners has no advisory clients. The following is a description of
the anticipated compensation arrangements that Phaeacian Partners expects to enter into
with its clients. Compensation earned by Phaeacian Partners for the provision of
investment advisory services to its clients is primarily comprised of management fees
based on a percentage of assets under management, as well as, in certain circumstances,
performance-based compensation.
Performance-based compensation, if applicable, with respect to any Phaeacian Fund or
Account, is generally expected to be calculated by a fund administrator. With respect to
any separately managed account, performance-based compensation is expected generally
to be calculated by the client and verified by Phaeacian Partners.
The following is a general description of the management fees typically charged and
other compensation received by Phaeacian Partners for each type of client. Investors and
clients should refer to the applicable offering and governing documents for the applicable
Phaeacian Fund or Account for complete information on fees and compensation.
Advisory Fees for Registered Investment Companies
In its capacity as investment manager to registered investment companies, Phaeacian
Partners typically is expected to receive an investment management fee that ranges from
0.5% to 1.5% of the applicable client’s net assets. All such fees and expenses are
described in each registered investment company’s prospectus and statement of
additional information. Phaeacian Partners may charge performance-based fees with
respect to registered investment company clients in the future.
Investment management fees and any additional compensation paid to Phaeacian Partners
may be waived by Phaeacian Partners in its sole discretion, both voluntarily and on a
negotiated basis with an investment company’s Board or similar body, or a client’s
Phaeacian Partners LLC
Part 2A of Form ADV: Firm Brochure
sponsor (though not with individual investors in any such registered investment
company). Phaeacian Partners may receive additional compensation for any
administrative or other services provided to the registered investment companies as
described in the respective registered investment company’s offering documents.
Advisory Fees for Separately Managed Accounts
The basic fee schedule for separately managed accounts is expected to typically range
from 0.5% to 1.5% of assets under management depending on product, asset type, and
size of account. In addition, certain separately managed accounts may be subject to a
performance-based fee payable to Phaeacian Partners, which generally are expected to
range from 5.0% to 25.0% of the appreciation in a client’s capital balance during the
year, which may be subject to various contingencies such as a hurdle rate or other
conditions.
Fees are generally expected to be billed monthly or quarterly, in advance or in arrears,
based on the market value of the account(s) as specified in the investment management
agreement. In addition to securities, market values include cash, cash equivalents,
accrued dividends and other income. If an account is opened or closed during a billing
period, the advisory fees are expected to be pro-rated for that portion of the billing period
during which the account was open. Phaeacian Partners may agree to certain fee
reductions or waivers.
Advisory Fees for Private Funds
In its capacity as investment manager to private funds, Phaeacian Partners typically is
expected to receive an annual management fee, generally paid monthly or quarterly, in an
amount generally ranging from 0.5% to 1.5%, depending on the investment strategy, of
the net asset value of each investor’s investment in the private fund.
In addition, Phaeacian Partners is expected to be entitled to receive from some private
fund investors performance-based compensation (also known as an incentive allocation),
which is generally expected to range from 5% to 25% of the appreciation in an investor’s
capital balance during the year, which may be subject to various contingencies such as a
hurdle rate or other conditions. Such management fees and performance-based
compensation are described in more detail in each client’s offering documents.
Phaeacian Partners may waive all or a portion of the management fees and/or
performance compensation due to Phaeacian Partners with respect to a private fund on an
investor-by-investor basis.
Phaeacian Partners LLC
Part 2A of Form ADV: Firm Brochure
In addition to the foregoing, the Phaeacian Funds and Accounts also incur brokerage,
custodial, administration, audit and other costs and expenses, as described in the
applicable prospectus or other offering document.