Item 5: Fees and Compensation
SkyBridge offers discretionary investment management and advisory services for a percentage of assets
under management, a fixed fee or fees based on performance as described below and further in Item 6. For
SkyBridge Funds that are not 1940 Act Funds, fees and minimum investment requirements may be waived,
reduced or calculated differently with respect to investors at the sole discretion of SkyBridge, as permitted
by the SkyBridge Fund’s offering documentation. For SkyBridge Funds that are 1940 Act Funds, no
management fee or minimum initial investment requirements may be waived, reduced or calculated
differently.
As among SkyBridge Funds, fees differ based upon a number of factors, including the nature of the fund
(for example, 1940 Act Funds have limitations on the types of fees that may be charged) and the trading
strategy. Further, complexity and investor demand are key drivers of SkyBridge’s fees and compensation
for its management of SkyBridge Funds. Managed Account fees may differ based upon a number of factors,
including without limitation, account complexity and size, assets under management and requested
commercial terms which are subject to negotiation.
SkyBridge may in the future charge other types of fees and use different fee structures, including variations
of performance or incentive fees and allocations.
Investment Management Fees and Performance Fees and Allocations
SkyBridge Funds pay SkyBridge management fees based on assets under management and, for certain
SkyBridge Funds, and historically Managed Accounts, an additional performance fee or allocation
determined as a percentage of profits, with performance fees or allocations subject to a “high water mark”
on terms set out in the relevant organizational documents. Investors in the SkyBridge Funds bear their pro
rata portions of such fees and allocations, which are non-negotiable. In certain cases, SkyBridge may agree
to waive part or all of the asset-based fee and/or reimburse the SkyBridge Fund, to the extent necessary to
prevent the SkyBridge Fund’s ordinary expenses from exceeding an agreed amount. The amounts of such
fees and allocations are described in detail in the offering documents for each SkyBridge Fund, and
investors or potential investors should review those materials carefully when making their investment
decisions.
SkyBridge Funds-of-Funds. Management fees payable by SkyBridge Funds-of-Funds range at present from
0.60% to 1.20% per annum of assets under management and from 0% to 10% of profits in respect of
performance fees or allocations.
Direct Investment Funds. Investors in SkyBridge Venture Funds other than SkyBridge Unicorn Recovery
Fund LP and SURF II, LP paid a one-time purchase fee on the portion of their capital contribution that was
invested in the Venture Fund’s underlying asset, with such amounts having ranged from 4.3% to 7.5% of
capital contributions. Performance allocations payable to the SkyBridge affiliated general partner are 20%
of profits, in some instances over a preferred return. SkyBridge Unicorn Recovery Fund LP and SURF II
each charge a 2% annual management fee. SURF II investment proceeds are distributed 100% to limited
partners until aggregate capital contributions are met and thereafter are split 80% to limited partners and
20% to the SURF II general partner. Digital Macro Fund charges a management fee of 2% per annum and
a 20% performance allocation.
For SkyBridge Funds and Managed Accounts, management fees are billed monthly or quarterly in arrears
based on the amount of assets under management. Such amounts are paid indirectly by investors on a pro
rata basis as a Fund expense. Fees will be prorated for any beginning or ending period of a contract that is
less than a full billing period. An initial fee will be calculated as of the date that SkyBridge accepts an
individual Advisory Client agreement between a Managed Account and SkyBridge (a “Advisory Client
Agreement”) or enters into an investment management or advisory agreement with a SkyBridge Fund. This
initial fee will cover the period from the date on which the agreement is entered into until the last day of
the initial billing period. The monthly or quarterly fees will be billed to each Advisory Client as they
become due and payable.
If an Advisory Client Agreement or investment management or advisory agreement is terminated,
SkyBridge will typically be entitled to fees earned through the effective date of termination, or such longer
period as may be agreed by the parties, and will provide the counterparty with a refund, if any, of any
additional fees paid in advance. Refunds are typically based on the number of days remaining in the
calendar quarter after the date upon which notice of termination is received.
The foregoing is current as of the date of this brochure. SkyBridge may sponsor funds in the future with
varying fee, incentive allocation, payment and termination terms.
Other Fees
Custodians (including banks or registered broker-dealers) will be used to facilitate the management of
Advisory Client assets. Please refer to Item 15 of this brochure for additional information about custody
of Advisory Client assets. The cost of these services is not included in the management fees described
above. Advisory Clients, directly in the case of Managed Accounts and indirectly in the form of a fund
expense in the case of SkyBridge Funds, will be responsible for paying any such additional costs charged
by custodians. The management fees charged by SkyBridge also do not include the amount of any costs,
expenses or commissions that a broker or dealer may charge in connection with transactions executed on
behalf of Advisory Client accounts. See Item 12 of this brochure.
In addition, a custodian or registered broker may impose certain costs or charges associated with servicing
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