ITEM 5. FEES AND COMPENSATION
COMPENSATION FOR ADVISORY SERVICES
We charge fees based on each client’s requirements for our services. Each client executes a client
service agreement (client agreement) with us outlining the services we will provide and the
investment management, financial planning, and other fees we will charge for the services. In
addition, investors in the Closed Growth Capital Funds pay investment management fees to RGT
for its services as investment manager to those funds pursuant to the funds’ governing documents.
Investors in Growth Capital 2019 pay fees pursuant to the fund’s governing documents, as
summarized below.
Our fees are negotiable, taking into consideration factors such as the amount of assets we will
manage for a client, the complexity of the client’s financial plan, the type and amount of services
requested, and any special circumstances including consideration of aggregation of certain other
related clients. Therefore, clients receiving similar services, in certain circumstances, will pay
different fees.
MANAGED ACCOUNT CLIENTS
For our investment management services, we charge each Managed Account Client an investment
management fee using a tiered fee schedule based on the client’s assets under management. The
specific fees applicable to each client are described in detail in each client’s Client Service
Agreement. Our investment management fee is calculated using the account balance in:
• each of the client’s custodial accounts that are noted as managed in the client agreement,
including cash amounts as described above in Item 4;
• any non-RGT private investment which RGT is managing for the client;
• the fair market value of the client’s investment in any Private Fund; and
• the fair market value of the client’s investment in any Growth Capital Fund
as of market close on the last trading day of the preceding quarter; provided however that
valuations for certain Private Funds, the Growth Capital Funds and certain client-specific approved
private investments are provided to RGT on a delayed basis. In these instances, fee calculations
will be determined using the most recently available value of such funds in proximity to such
quarter-end.
INVESTMENT MANAGEMENT FEE STRUCTURE
Our Firm’s fees range from 0.25% to 1.25% of a client’s assets under management. Portfolios are
valued using the gross value of the assets and accounts generally without any offset for margin or
debt balances. Assets are priced using prices supplied by our custodians, based on the value
reported by a third-party manager, or in the case of investments for which third party values are
not readily available, in good faith by RGT. Account values are not adjusted for intra-quarter cash
flows. Investment management fees are generally calculated quarterly in advance and charged
mid-quarter by deduction from the client’s custodial account or by payment with check. Similarly
situated clients could pay different fees. In addition, similar advisory services may be available
from other investment advisers for similar or lower fees.
PRIVATE FUND INVESTMENTS
Each Fund bears all costs of its organization and operation, expenses incurred in the purchase and
sale of investments, and accounting and audit fees. For further details, please see the governing
documents for the respective Fund.
1. PRIVATE FUNDS
There is no management fee charged to the Private Funds. However, the value of the client’s
investment in each of these Funds is included in the Managed Account Client total assets under
management and is charged the investment management fee outlined in the client agreement.
2. GROWTH CAPITAL FUNDS
Closed Growth Capital Funds
RGT receives a 1% investment management fee annually from each of the Closed Growth Capital
Funds. The fee is calculated quarterly in advance and charged mid-quarter by deduction from each
investor’s capital account balance. RGT does not collect investment management fees from the
multi strategy Funds for that portion of assets that they invest in the single strategy Funds. In
addition, the value of the client’s investment in the Closed Growth Capital Funds is included in
the Managed Account Client total assets under management and is charged the investment
management fee outlined in the client agreement. Because we receive the investment management
fee for the Growth Capital Funds in addition to the investment management fee from the clients,
our recommendation to invest in these funds creates a potential conflict of interest. We mitigate
this conflict by disclosing the existence of these fees in the Closed Growth Capital Funds
governing documents and this brochure. We may waive or reduce the investment management fee
applicable to any or all investor(s) in a Closed Growth Capital Fund.
Growth Capital 2019
As further described in the governing documents of Growth Capital 2019, there are three classes
of interests that may pay management fees, a carried interest distribution over a preferred return,
an administrative expense, and other fund expenses, depending on the terms of the class. The
terms of Class A, B and C Interests will generally be the same, except that (i) Class A Interests
generally will not be subject to the management fee because these investors are otherwise already
subject to a management fee under their client agreement, and (ii) Class C Interests which are
available only to employees generally will not be subject to the management fee or carried interest
distributions. Further information regarding the amount, structure and timing of these fees is
discussed in the fund’s governing documents which are available to qualified purchasers. We may
waive or reduce or calculate differently the management fee, administrative fee or carried interest
distribution applicable to any or all investor(s) in Growth Capital 2019.
FINANCIAL PLANNING AND FAMILY OFFICE SERVICES
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