Item 5. Fees and Compensation
The Fund Managers typically charge management fees to the Quadrangle Funds for their advisory
services and the Fund GPs receive performance‐based profit allocation from the Funds as described in
Item 6 of this Brochure. The amount and terms of payment of the management fees charged are described
in the relevant Quadrangle Fund’s Fund Agreement, Investment Management Agreement, and private
placement memorandum or other offering materials.
The Fund Managers generally receive a management fee based upon capital commitment or contributions,
which is payable quarterly in advance. Management fees during the investment period of a Fund are
generally based on the total capital committed to the Fund by investors and after the investment period of
the Fund on a percentage of invested capital subject to certain adjustments. The investment periods of all
Quadrangle Funds have expired and management fees are generally 1.25% of invested capital.
Quadrangle and/or the Fund Manager may also waive, offset, suspend or reduce the management fee by
certain fees received by a Fund Manager as detailed in the applicable Fund Agreement and/or Investment
Management Agreement.
Each Quadrangle Fund generally pays all expenses related to its own operations, including fees, costs and
expenses directly related to the purchase, sale and custody of securities, expenses of counsel, accountants
and other consultants and professionals, any insurance, indemnity or litigation expense or the costs and
expenses of any lenders, investment banks and other financing sources and any taxes, fees or other
governmental charges levied against a Fund, and any costs incurred in connection with transactions which
are not consummated.
Each Quadrangle Fund generally pays its organization and startup expenses, including legal, accounting,
filing, capital raising and other organization expenses, as well as all fees of any placement agent (which
reduce the management fee otherwise payable by the fund by an identical amount but is otherwise treated
as an organizational expense).
The Fund GP shall bear and be charged with the following costs and expenses of the Funds’ activities: (a)
any costs and expenses of providing to the Funds the office overhead necessary for the Funds’ operations,
(b) the compensation of the Fund GP and Quadrangle personnel, (c) all unreimbursed travel and
entertainment expenses incurred by the Fund GP and/or Quadrangle personnel in connection with actual
or prospective portfolio investments. At the present time, the unreimbursed travel and entertainment
expenses are paid by Quadrangle and then reimbursed by the Fund GP.
A percentage of all transaction, directors’, consulting, management, investment banking, monitoring,
closing, topping, break-up and other similar fees paid to or received by Quadrangle and/or Fund Manager
in connection with portfolio investments or its unconsummated transactions may reduce the management
fee as detailed in each Fund Agreement and/or Investment Management Agreement.