Shepherd Kaplan Krochuk LLC

Item 5: Fees and Compensation
I. Fees and Compensation on Wealth Management Accounts Sub-advised by SK

A. Institutional Clients
Fees are either a flat fee negotiated with the client or are based on assets under management, generally
including securities and cash, and plan type, and in some cases include a minimum annual fee. Annualized
fees are set forth in the client’s management agreement. Percentage based fees generally range from 5 to
50 Basis Points (bps, 1 bps = .01%) and are negotiated on an individual basis. In some cases, institutional
services provided to businesses or entities held by private wealth management clients may be provided for
fees that resemble the fees negotiated by the private wealth management clients, and the institutional fees
may depart from the range above as a result. Generally, bills for services are issued on a quarterly basis in
advance. Clients in certain instances also pay an initial negotiated consulting fee. If applicable, there is
sometimes an additional fee for conducting a vendor search for a custodian or administrative record keeper.
Clients approve invoiced fees prior to payment.
Fees are either deducted from client-designated accounts or are billed to the client and paid separately. At
the time of client relationship termination, any fees received for services not yet performed will be fully
refunded on a pro-rated basis.
B. Private Clients

Fees are generally assessed based on assets under management and include a minimum fee in particular
situations. Annualized fees are set forth in the client’s management agreement. They generally range from
40 to 100 Basis Points (bps, 1 bps = .01%), but in the case of investment advice related to Qualified Small
Business investments discussed in Item 4, which are not made within the asset management structures
established by the Firm, fees of approximately 175 Basis Points (1.75%) are charged on assets committed
to such an investment strategy, and are negotiated on an individual basis. In some cases, this fee is charged

           Form ADV Part 2A – Shepherd Kaplan Krochuk LLC                                              2026

in addition to asset management fees related to investments affiliated with SKK, in circumstances where
the client is advised of the additional fee and agrees in advance to its application. With respect to advice
concerning Qualified Small Business investments, SKK also reserves the right to charge fixed upfront fees
to cover due diligence, research, or analytical work in some situations, such as when SKK is asked to
perform extensive work reviewing potential investments for such a Qualified Small Business investment
strategy. Generally, bills for services are issued on a quarterly basis in advance. Clients also pay a
negotiated initial consulting fee, travel expenses, family office service fees and special project fees in
particular situations.

In some limited circumstances, a sophisticated private client agrees to a performance-based fee that both
parties deem appropriate. In such cases, both parties agree that the fee will include a portion of the return
on the client’s investments. Performance-based fee arrangements raise potential conflicts of interest, which
are further discussed in Item 6.

Recommendations that clients purchase or sell securities using borrowed money (i.e., margin accounts or
lines of credit) create a potential conflict of interest. This conflict occurs because advisory fees are based
on the total market value of the securities in the clients’ accounts. A margin debit balance does not reduce
the total market value of securities on which a client will be billed. By using borrowed money to purchase
securities, the total market value of an account will be higher, which results in a higher advisory fee.

Fees are either deducted from client-designated accounts, or clients choose to be billed and pay fees
separately. On a quarterly basis, clients receive an invoice with details of their assets as of quarter end and
the fees charged for each account. At the time of client relationship termination, any fees received for
services not yet performed will be fully refunded on a pro-rated basis.

C. Endowment and Foundation Clients

Fees are either a flat fee or are based on assets under management and include a minimum fee in certain
instances. Annualized fees are set forth in the client’s management agreement. They generally range from
20 to 100 Basis Points (bps, 1 bps = .01%) and are negotiated on an individual basis. Generally, bills for
services are issued on a quarterly basis in advance. Clients also pay an initial consulting fee if agreed upon.

Fees are either deducted from client-designated accounts, or clients choose to be billed and pay fees
separately. On a quarterly basis, clients receive an invoice with details of their assets as of quarter end and
the fees charged for each account. At the time of client relationship termination, any fees received for
services not yet performed will be fully refunded on a pro-rated basis.

D. Other Fee Information

Clients with investments in private funds (including those offered by SKK) will normally be subject to
management fee and other expenses of the private fund. The manager, general partner, or investment
manager in some cases also receive, if agreed, a performance allocation which is based on a fund’s net
profits or distributions.

Any SKK wealth management client who decides to invest in one or more of SKK’s private fund offerings
or certain other investments in which SKK or its affiliates have a financial interest, will generally receive
some discount or waiver of the wealth management fee and/or fund asset management fees on the same
asset while they remain clients of the firm. The potential for SK and/or SKK and their related parties to
benefit from investments made in those private equity and real estate funds or other entities presents a
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Item 7: Types of Clients
SKK offers regular and continuous advisory services for private investment funds, pension plans,
institutions, endowments & foundations, private clients, family offices, assets funding variable insurance
policies, and high net worth individuals. SKK no longer advises a registered investment company. Unless
otherwise agreed, in the case of institutional clients, SKK provides such services to the institutions, as
distinguished from investors, limited partners, members, participants or clients of such institutions
themselves. Information on clients for which SK provides sub-advisory services can be found in SK’s
separate Form ADV Part 2A brochure.

The target minimum amount of initial assets for a private wealth management client is $20,000,000. The
minimum account size for any new account is, however, subject to modification by mutual agreement with

           Form ADV Part 2A – Shepherd Kaplan Krochuk LLC                                              2026

a client as determined on a case-by-case basis in light of particular circumstances. The investment objective,
strategy, or guidelines of the account, particularly the introductory nature of a new strategy or investment
approach for a private investment fund, the expectation of additional contributions to an account, the present
or expected business relationship with the specific client or other potential clients, and similar
considerations, can affect the minimum initial account size agreed upon.