Item 5 – Fees and Compensation
The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into a written
agreement with the Advisor.
A. Fees for Advisory Services
Private Fund Services
Each Fund pays the Advisor fees for its services as the manager to the Fund. These fees include (depending on
the Fund) a percentage of aggregate capital contributions, a percentage of the net book value of a Fund’s assets,
a fixed fee, and/or a performance/incentive-based fee. The fees charged vary by Fund and are borne by the
investors in each Fund. Fees range up to 2.50% annually in management fees and up to 20% in incentive fees.
The fees charged by a Fund are related to the structure and risk of the underlying investments. Funds invested in
debt/income securities tend to charge lower management and performance-based fees and fund invested in
equity securities will expect to charge higher fees within the spectrum.
Performance-based fee arrangements create a conflict of interest since there is an inducement for TRC to take
more risk than it would absent such arrangements in order to seek higher returns. However, as outlined in the
Funds’ respective Offering Documents, there are certain hurdles that must be achieved in order for TRC to
receive any such fee, which mitigates the conflicts of interest. In addition, TRC is a fiduciary to the Funds and
must always act in the best interest of the Funds. Please refer to Item 6 below for further important disclosures
regarding performance-based fees.
For more detailed information on the fees and compensation received by the Advisor and its affiliates,
please refer to the respective Fund’s Offering Documents.
Family Office Services
TRC offers family office services for a fixed annual fee ranging from $10,000 to $150,000. Fees may be negotiable
based on the nature and complexity of the services to be provided, assets under management and the overall
relationship with the Advisor. An estimate for total costs will be determined prior to establishing the advisory
relationship. As noted in Item 4, the Advisor will offset its advisory fees for Family Office Clients if any assets are
placed into a Fund.
The Advisor’s fee is exclusive of, and in addition to any applicable securities transaction and custody fees, and
other related costs and expenses described in Item 5.C below, which may be incurred by the Family Office Client.
However, the Advisor shall not receive any portion of these commissions, fees, and costs.
B. Fee Billing
Private Fund Services
Thornapple River Capital LLC
549 Ottawa Ave NW, Suite 201, Grand Rapids, MI 49503
Phone: 616-560-5370
www.thornapplecap.com
The management fee is calculated and automatically deducted from the Funds by the Administrator on
behalf of the Advisor. Management fees for private fund services are billed quarterly in advance.
For more detailed information on the fee methodology, please refer to the respective Fund’s Offering
Documents.
Family Office Services
Fees for family office services are billed quarterly in advance. At the beginning of each calendar quarter, TRC
sends an invoice to the Family Office Client for payment which is due upon receipt.
C. Other Fees and Expenses
Private Fund Services
Investors may incur certain fees or charges imposed by third parties, other than TRC, in connection with
investments made in the Funds. Each Fund is responsible for paying its own expenses, which include but are not
limited to legal, accounting, regulatory, and other expenses relating to the formation and/or organization of the
Fund. These expenses are borne by investors. Each investor is responsible for their own expenses and out-of-
pocket costs incurred in connection with the organization of, their admission to, and the maintenance of their
interest in a Fund.
Family Office Services
Family Office Clients may incur certain fees or charges imposed by third parties, other than TRC, in connection
with investments made on behalf of the Family Office Client’s account[s]. The Family Office Client is responsible
for all securities execution and custody fees charged by the Custodian, if applicable. The Advisor's
recommended Custodian does not charge securities transaction fees for ETF and equity trades in Family Office
Client accounts, but does charge for mutual funds and other types of investments. The fees charged by TRC are
separate and distinct from these custody and execution fees.
In addition, all fees paid to TRC for investment advisory services are separate and distinct from the expenses
charged by mutual funds and ETFs to their shareholders, if applicable. These fees and expenses are described
in each fund’s prospectus. These fees and expenses will generally be used to pay management fees for the
funds, other fund expenses, account administration (e.g., custody, brokerage and account reporting), and a
possible distribution fee. A Family Office Client may be able to invest in these products directly, without the
services of TRC, but would not receive the services provided by TRC which are designed, among other things, to
assist the Family Office Client in determining which products or services are most appropriate for each Family
Office Client’s financial situation and objectives. Accordingly, the Family Office Client should review both the fees
charged by the fund[s] and the fees charged by TRC to fully understand the total fees to be paid. Please refer to