Fees and Compensation — Form ADV Part 2A (3/29/2019)
[Brochure]
Item 5: Fees and Compensation
The fees applicable to each Client are set forth in detail in the corresponding Offering
Documents. A brief summary of such fees is provided below.
It is important that Clients refer to the respective Offering Documents and other governing
documents (including, any Investment Management Agreement) for a complete
understanding of fees and other forms of compensation. The information contained herein
is a summary only and is qualified in its entirety by such materials.
Management Fees
The Equity Market Neutral Fund pays to the Firm a quarterly management fee (the
“Management Fee”) calculated at an annual rate of 1.0% of each Investor’s capital
account attributable to Series C respectively.
The Credit Opportunities Fund pays to the Firm a quarterly management fee calculated
at monthly rate of (i) 1.25% attributable to Class A Founders’ Interests, and (ii) 1.5%
attributable to Class A Standard Interests. The Management Fee is paid quarterly in
advance, based on the value of each Investor’s capital account, as of the first business day
of each calendar quarter. The Management Fee will be adjusted for contributions and
withdrawals made during the quarter.
The General Partner may waive or modify the Management Fee for Investors that are
members, employees or affiliates of the General Partner or the Firm, relatives of such
persons, and for certain large or strategic investors.
We also receive a Management Fee from the Managed Account.
Other Types of Fees or Expenses
The Firm will render its services to the Equity Market Neutral Fund at its own expense and
will be responsible for its overhead expenses including: office rent; furniture and fixtures;
stationery; secretarial/internal administrative services; salaries and bonuses;
entertainment expenses; employee insurance and payroll taxes.
All other expenses are paid by the Equity Market Neutral Fund and shall include: the
Management Fee; legal, compliance, administrator, audit and accounting expenses
(including third party accounting services); organizational expenses; investment expenses
such as commissions, research fees and expenses (including Bloomberg and similar
subscriptions and data services and research related travel including meals and lodging);
interest on margin accounts and other indebtedness; borrowing charges on securities sold
short; custodial fees; bank service fees; Fund-related insurance costs (including D&O and
E&O insurance for the Firm and the General Partner and outside directorship liability);
expenses of regulatory compliance, filings and reporting (including but not limited to
Section 13, Section 16 and Form PF filings); and any other expenses related to the
purchase, sale or transmittal of the Equity Market Neutral Fund’s assets. Organizational
expenses will be paid by the Equity Market Neutral Fund and, for net asset value purposes,
may be amortized over a period of up to 60 months from the date the Equity Market
Neutral Fund commenced operations.
Neither the Firm nor its employees accept compensation, including sales charges or
service fees, from any person for the sale of securities or other investment products.
Account Minimums and Types of Clients — Form ADV Part 2A (3/29/2019)
[Brochure]
Item 7: Types of Clients
Currently, our Clients are the Equity Market Neutral Fund, the Credit Opportunities Fund,
and the Managed Accounts, as described above. We may in the future provide investment
advice to additional Funds or SMAs for institutional and high net worth investors.
Generally, the minimum initial investment in the Equity Market Neutral Fund and the
Credit Opportunities Fund is $2 million and $5 million respectively, and the minimum
subsequent investment is $100,000, both subject to reduction at the discretion of the
General Partner.