Fees and Compensation — Form ADV Part 2A (3/30/2023)
[Brochure]
Item 5 – Fees and Compensation
Management Fees
Safkhet charges the Funds an asset‐based management fee (“Management Fee”), which
is based on a sliding scale that incrementally decreases from 2.50% per annum as assets
under management increase for each Client or a fixed Management Fee percentage
depending on the class of interests.
If an SMA Client is engaged, the SMA may pay Safkhet an annualized management fee
(the “SMA Management Fee”). The SMA Management Fee will be subject to negotiation
with the Client and a Client may therefore pay more or less than other Clients for the
same or similar management services. Any SMA Management Fee will be dependent on
the individual investment advisory agreement negotiated between the Client and
Safkhet. Safkhet may in its own discretion waive or reduce the Management Fee.
Performance Fees
See Item 6 below.
Calculation and Payment of Management Fees
Management Fees are calculated and billed by Safkhet quarterly in advance based on the
market value of the assets managed by Safkhet as of the first business day of each
calendar quarter (“Calculation Date”). Management Fees are deducted from each Client’s
account by Safkhet generally within five (5) days after the Calculation Date.
Additional Fees and Expenses
Fees paid to Safkhet are exclusive of all custodial and transaction costs paid to the Client’s
custodian, brokers or other third‐party consultants. Please see Item 12 – Brokerage
Practices for additional information. Fees paid to Safkhet are also separate and distinct
from the fees and expenses charged by mutual funds, exchange traded funds (“ETFs”) or
other investment pools to their shareholders (generally including a management fee and
fund expenses, as described in each fund’s or pool’s prospectus or offering materials).
Each Client (and each Investor) should review all fees charged by funds, brokers, Safkhet
and others to fully understand the total amount of fees paid by the Client (and each
Investor) for investment and financial‐related services.
Either Safkhet or the Client may terminate their investment advisory agreement at any
time, subject to any written notice requirements in such agreement. In the event of
termination in accordance with its terms, any paid but unearned fees will be promptly
refunded to the Client based on the number of days that the account was managed, and
any fees due to Safkhet from the Client will generally be invoiced or deducted from the
Client’s account prior to termination.
Compensation for Sale of Securities or Other Investment Products
Safkhet Capital Management LLC March 2023
Form ADV Part 2A
Safkhet does not receive compensation for securities transactions or services related to
any Client account or any other fees other than the Management and Performance Fees
charged for its advisory services.
Safkhet Capital Management LLC March 2023
Form ADV Part 2A
Account Minimums and Types of Clients — Form ADV Part 2A (3/30/2023)
[Brochure]
Item 7 – Types of Clients
Safkhet’s Clients (and Investors therein) may include the Funds, institutional entities, high
net worth individuals, families, trusts, foundations, sovereign wealth funds, private or
public pension plans and endowments (referred to herein as “Clients”). Safkhet’s
minimum subscription in its private funds is $3 million and the minimum SMA size is $50
million. Safkhet may waive these minimums in its sole discretion.
Safkhet may allow certain Investors to invest in a Fund on different business terms than
other Investors. For example, a Fund may agree to provide certain Investors additional or
different information from the information made available to the other Investors in a
Fund. Safkhet also may agree to provide certain Investors with a fee arrangement that
differs in structure and amount from that generally available to other Investors in the
Fund. In determining whether to allow an Investor to participate in a Fund on different
business terms, Safkhet may consider a number of different factors including, but not
limited to, Safkhet’s belief about whether the different terms will adversely affect the
other Investors in a Fund considered as a group; such Investor’s objectives in requesting
or accepting such terms; whether such Investor is under legal, regulatory or “best
practices” obligations to request such terms; and/or whether granting such terms is in
any respect inconsistent with representations made by a Fund or Safkhet to Investors.
Safkhet Capital Management LLC March 2023
Form ADV Part 2A