Fees and Compensation
A/B. Tilden Park deducts management fees directly from the Funds’ assets on a quarterly basis. Tilden
Park invoices management fees to the Managed Accounts’ beneficial owners on a quarterly basis. With
respect to Funds that are structured as open-end or “hedge” funds (the “Open-End Funds”), an affiliate of
the Firm is eligible to be allocated performance-based compensation in an amount equal to up to 20% of
the net realized and unrealized gains earned by each investor, subject to a modified high-water mark, on an
annual basis; provided, that such performance-based compensation may also be received upon an interim-
year withdrawal as if the withdrawal date were the end of the year. With respect to Funds that are structured
as closed-end or “private equity” funds (the “Closed-End Funds”), an affiliate of the Firm is eligible to be
distributed an amount up to 20% of the proceeds realized upon the disposition of the assets of such Fund,
subject to a preferred return and the return of capital contributions to investors. With respect to the Managed
Accounts, the Firm is eligible to be paid performance-based compensation, which may be equal to a portion
of (i) the net realized and unrealized gains earned by such Managed Account, subject to a high-water mark,
which is invoiced to the beneficial owner on an annual basis, or (ii) the net realized gains earned by such
Managed Account, which is invoiced to the beneficial owner when earned. Please refer to Item 6 and Item
11.B for additional disclosures about performance-based compensation. This brochure is only delivered to
“qualified purchasers” as defined in the Investment Company Act.
C. The Funds will generally bear their own expenses, as disclosed in each Fund’s offering documents.
Expenses that the Funds may bear include, but are not limited to, the following: investment expenses
(e.g., custodial fees, interest expenses, initial and variation margin, broken deal expenses, consulting and
other professional fees relating to particular investments, research related investments and travel expenses
incurred in connection with due diligence and monitoring), legal expenses, expenses associated with
regulatory filings made in connection with the Funds’ operations and portfolio holdings, systems and
technology, insurance, audit and tax preparation expenses, organizational expenses, expenses relating to
the offer and sale of interests in the Funds and extraordinary expenses, expenses related to services
performed by the administrator, fees of pricing services and valuation firms, and expenses incurred by
members of an advisory committee in connection with the fulfillment of their duties to the Funds, including
their legal and advisory fees, and reasonable travel expenses to attend meetings. Please see each Fund’s
respective offering documents for additional information related to expenses. Managed accounts may bear
expenses similar to those disclosed above. Expenses allocated to managed accounts may be negotiated
individually with respect to each managed account. At its discretion or pursuant to the terms of an
investment advisory agreement, the Firm may pay expenses that would otherwise be allocated to a
Client. The Firm and Clients that do not pay expenses benefit from services paid for by other Clients or
the Firm, as applicable.
Clients that invest in money market mutual funds, ETFs or other registered investment companies will bear
a proportionate share of the related fees and expenses in addition to the fees paid to Tilden Park. Clients
will incur brokerage and other transaction costs. Please see Item 12 “Brokerage Practices” for more
information.
Any description of the expenses that a Client may bear (including those listed herein) is not exhaustive.
Tilden Park determines, in its sole discretion, whether an expense is to be categorized as an expense of one
Client or another or an expense of the Firm. This analytical process is inherently subjective and Tilden
Park may be viewed as biased in making such determinations. The allocation of expenses presents an
inherent conflict of interest, as different allocations would result in Clients and the Firm bearing more (or
less) expenses. Tilden Park has adopted and implemented written compliance policies and procedures
designed to address this conflict and ensure that Tilden Park abides by its duty to act in the interests of
Clients. Tilden Park makes these determinations in accordance with provisions in Client governing
documents and the Firm’s written expense allocation policies and procedures.
D. Management fees are paid in advance by the Funds on a quarterly basis and in advance or arrears
by the Managed Accounts. In the event Tilden Park does not provide services to a Client for the full period,
the Management Fee is typically required to be returned. In general, the amount of fees returned is
calculated based on the number of days remaining in the applicable period.
E. Neither Tilden Park nor any of its supervised persons accept compensation for the sale of securities
or other investment products.