Item 5 – Fees and Compensation
Generally, PCA charges a management fee consisting of a percentage of assets under
management. The amount and manner in which fees are assessed by PCA are based on
contractually specified percentages of the assets of the fund. The specific fees charged by PCA
are set forth in the Advisory Agreements and are described below. In the future, the Firm may
charge a performance allocation or fee consisting on a percentage of profits of a fund.
Prism Alt Income Fund, LLC
Pursuant to the Advisory Agreement between Prism Alt Income Fund, LLC and PCA, PCA
receives an annual management fee equal to 2.25% of the each Member’s share of the net asset
value of such fund.
PRISM Multi Strategy Fund
Pursuant to the Sub-Advisory Agreement between PCA and Crow Point Partners, LLC (“Crow
Point”), the investment manager of PRISM Multi Strategy Fund, PCA receives 80.00% of the
management fee paid to Crow Point. Pursuant to the fund’s Advisory Agreement, Crow Point
receives 1.50% of the fund’s average daily gross invested assets. However, the advisers have
contractually agreed to waive their fees and reimburse expenses of the fund to ensure that total
annual fund operating expenses after the fee waiver and reimbursement (exclusive of any taxes,
brokerage fees and commissions, borrowing costs (such as interest and dividend expense on
securities sold short), acquired fund fees and expenses, or extraordinary expenses such as
litigation) will not exceed 2.15% of the fund’s average daily net assets.
Acquired Fund Fees and Expenses
Investors in the funds advised by PCA will incur all fees and expenses applicable to such funds’
investment in the underlying pooled investment vehicles (“Portfolio Funds”), including asset-
based, performance-based, carried interest, incentive allocation and other compensation payable
to the managers in consideration of the managers’ services to the Portfolio Funds, as well as any
fees paid for advisory, administration, distribution, 12b-1, shareholder servicing, sub-accounting,
sub-transfer agency and other services. All fees and expenses of the Portfolio Funds are generally
in addition to the fees each fund pays to PCA.
Additional Fees and Expenses
PCA’s fees are charged separately, net of any brokerage commissions, transaction fees, fund fees
or other fund related costs and expenses, if any, (which are incurred by the fund client, and may
include legal and accounting costs).
The Advisory Agreement of each fund provides a description of any additional fees and expenses
for which investors may be responsible in addition to the management fees and any
performance‐based allocations or fees. Generally, each client will be responsible for all costs and
expenses relating to the organization and operation of such fund, including, without limitation, (i)
administration fees and expenses, whether provided by a third party or by PCA or an affiliate of
PCA; (ii) audit fees; (iii) brokerage commissions, clearing and settlement charges; (iv) prime
brokerage fees, custodial fees, other bank service fees; (v) interest and other expenses incurred in
respect of borrowings, if any; (vi) due diligence-related expenses, including, without limitation,
third-party consultants and related travel; (vii) expenses associated with information,
communication and periodic reporting to investors; (viii) expenses incurred in connection with
legal and regulatory compliance with U.S. federal, state, local and non-U.S. or other law or
regulation; (ix) financial statements, tax returns and Schedules K‐1 (if applicable); (x) insurance
premiums; (xi) legal fees, including costs of litigation involving the funds or accounts and the
amount of any judgments or settlements paid in connection herewith; and (xii) marketing
expenses incurred in connection with fundraising activities in each case subject to the
organization expense cap for the applicable fund, if any.
A complete description of the fees to be paid to PCA in connection with an investment in a fund
is available in the Advisory Agreements.