Fees and Compensation — Form ADV Part 2A (3/22/2019)
[Brochure]
ITEM 5: FEES AND COMPENSATION
Piraeus Management is compensated for its services through an annual fee, payable in quarterly installments
by the Piraeus Funds to Piraeus Management. The management fee payable by the Piraeus Funds with
respect to an investor is one and one half percent (1.5%) per annum of the capital commitment of such
investor. The Principals, through Piraeus Management or an affiliate, may also charge and receive from a
portfolio investment, and retain for their own account, transaction fees, management, monitoring, consulting,
director’s, and similar fees in connection with the Piraeus Funds’ investments.
In addition to the foregoing and the share of profits described in Item 6 below, Piraeus Management is
entitled to indemnification from its investors and its Piraeus Funds.
ITEM 6: PERFORMANCE-BASED COMPENSATION AND SIDE-BY-SIDE MANAGEMENT
An affiliate of Piraeus Management is entitled to a share of the profits derived from the performance of the
Piraeus Funds’ investments. Once the Piraeus Funds have returned all contributed capital back to their
investors, remaining distributions from direct investments are made eighty percent (80%) to investors, and
twenty percent (20%) to an entity controlled by the Principals, while remaining distributions from fund of
funds investments are made ninety five percent (95%) to investors, and five percent (5%) to such entity. The
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Piraeus Management LP
Principals beneficially own at least 90% of distributions to be made from such entity.
Account Minimums and Types of Clients — Form ADV Part 2A (3/22/2019)
[Brochure]
ITEM 7: TYPES OF CLIENTS
Piraeus Management provides investment advisory services to the Piraeus Funds and not to investors. Each
investor in a Piraeus Fund must make its own analysis and investment decision as to whether it makes a
capital commitment. Each investor who makes a capital commitment must meet the eligibility requirements
outlined in such Piraeus Fund’s offering documents, which include that the investor must be both an
accredited investor and a qualified purchaser.
Investors are required to commit to invest a minimum of two hundred million U.S. dollars (USD
200,000,000) in the Piraeus Funds. This amount may be reduced at the discretion of Piraeus Management.
There is no minimum investment amount required for a particular Piraeus Fund. When an investment
opportunity is ready to be consummated, it is generally funded by investors, pro rata, based on their
respective capital commitments relative to the aggregate capital commitments then available to Piraeus
Management, and by co-invested capital to the extent that capital commitments are not used. Piraeus
Management determines the amount of capital commitments to be invested on a discretionary basis. The
primary factor in this decision is preserving enough capital commitments such that an investor’s capital
commitment will be invested across more than one portfolio investment. Other factors include (1) the size of
a given investment opportunity, (2) the number of other investments that Piraeus Management is evaluating
at the time the investment closes, and (3) the Principals’ judgment as to the appropriate allocation to a given
investment based on general concentration.
Investors are required to make certain representations when making capital commitments, including but not
limited to the following: (1) they are aware of the risks associated with engaging investment managers and
that they understand the risks associated with investments in securities of operating businesses, including that
such investments may be illiquid and may involve a high degree of risk and that the investment could suffer
substantial diminution in value, including complete loss, (2) their portfolio investments (through the Piraeus
Funds or a Strategy Fund) may not be consummated at an attractive valuation, that the portfolio investments
may not be able to achieve their business objectives, that the portfolio investments may have technologies or
strategies that are untested, and that portfolio companies may be operating in volatile markets, (3) Piraeus
Management does not guarantee the performance or success of the portfolio investments, (4) their
investments in Piraeus Funds are neither intended to be a complete investment program nor satisfy the
investors’ need for diversification, and (5) the costs and expenses that investors will incur are regardless of
whether any profits are earned from their investments.