Item 5: Fees and Compensation
A. Fee Schedule
Any new fund launched by Presidio may have materially different terms than those summarized
below. The fees paid by the Funds are negotiable by Investors only prior to an investment in the
Fund, at the discretion of the General Partner. Presidio, and or the relevant General Partner, has
waived fees for certain investors, including employees and affiliates of Presidio in certain Funds.
Management Fees
Presidio is generally compensated for its advisory services through asset-based management fees
based on the capital commitments of the Limited Partners during the investment period. After the
investment period, or a time noted in the applicable Fund Agreement, the management fee is
calculated based on the terms of the applicable Fund Agreement. However, in certain cases the
management fee may be a flat fee, or be based on a percentage of the net asset value of the portfolio
of the applicable Fund. Investors should review the Fund Agreement for details. The management
fee is typically paid quarterly in advance.
Carried Interest
In addition, as described in more detail in Item 6 below, the applicable General Partner generally
receives a performance allocation (commonly referred to as “Carried Interest”) in each Fund.
Presidio generally receives the “carried” interest through each Fund’s General Partner entitling it
to a certain percentage of the realized profits subject to a preferred return or hurdle rate to Limited
Partners.
B. Payment of Fees
Management Fees are withdrawn directly from the Funds, and such fees may be paid in advance or
arrears, depending on the specific fund arrangement, as disclosed in the individual Fund’s offering
documents.
Performance-based fees are withdrawn directly from the Investor’s accounts in arrears as
investments are liquidated.
C. Client Responsibility For Third Party Fees
Funds are responsible for the payment of all third party fees (i.e. custodian fees, brokerage fees,
transaction fees, etc.). Those fees are separate and distinct from the fees and expenses charged by
Presidio. Please see Item 12 of this brochure regarding broker/custodian.
As set forth in the Fund Agreements, Fund expenses shall include, without limitation; any sales or
other taxes, fees or government charges which may be assessed against the Fund; commissions or
brokerage fees or similar charges incurred in connection with the purchase or sale of securities;
expenses and fees of members of the relevant review committee incurred in connection with their
duties (including travel-related costs and expenses); the costs and expenses (including travel-related
expenses) of annual or special meetings of the review committee and the Fund or otherwise holding
meetings or conferences with Investors; interest expense for borrowed money; all expenses relating
to litigation and threatened litigation involving the relevant Fund, indemnification expenses;
expenses attributable to normal and extraordinary investment banking, commercial banking,
accounting, auditing, appraisal, tax advisory, legal, external consulting, custodial and registration
services provided to the Fund by third parties, including in each case services with respect to the
proposed purchase or sale of securities by the Fund that are not reimbursed by the issuer of such
securities or others (whether or not any such purchase or sale is consummated); reasonable
premiums for liability insurance to protect the Fund, the applicable General Partner, Presidio and
certain of its related persons, the members of the review committee and any of their respective
partners, members, stockholders, officers, directors, employees, agents or affiliates in connection
with the activities of the Fund; the costs of dissolving the Fund and liquidating its assets; expenses
associated with preparation of Fund’s financial statements or tax returns and Fund’s reports to
Investors; placement agent fees and all other expenses properly chargeable to the activities of the
Fund.
In addition, with respect to certain Funds, as outlined in the applicable Fund Agreement, the Fund
shall be responsible for appraisal and specialized consulting, advisory or professional services fees
and expenses relating to the Fund and its activities, and fees and expenses relating to outsourced
finance and accounting services.
Offset Management Fees
If Presidio, its managing members, the General Partners, or full-time, permanent employees receive
directors’ fees or consulting fees, advisory fees, break-up fees or similar fees from the Portfolio
Companies, 100% of the fees will offset the management fees payable by the applicable Funds,
unless approved by the advisory boards of the applicable Funds. These fees, and the associated
conflicts of interest they present, are further described in Item 11 below.
It is important that Investors refer to the relevant governing documents for a complete
understanding of expenses and fees they may pay through an investment in the Funds. The
information contained herein is a summary only and is qualified in its entirety by such documents.
D. Prepayment of Fees
As described in Item 5.B, management fees applicable to each Fund are paid quarterly in advance
to Presidio pursuant to the applicable Fund Agreement. In the event Presidio’s contract with a Fund
is terminated during a fiscal period, a pro-rated portion of the management fees paid in advance of
the fiscal period in which such termination occurs would be returned to the applicable Fund.
E. Outside Compensation For the Sale of Securities to Clients
Not applicable. Neither Presidio nor its supervised persons accept any compensation for the sale of
securities or other investment products.