Fees and Compensation — Form ADV Part 2A (3/25/2024)
[Brochure]
Item 5: Fees and Compensation
TEP receives fees for the services it provides monthly in advance. These services include sourcing
opportunities for investment in oil and gas properties, underwriting those opportunities, negotiating
acquisition terms, managing the cash flows of the assets that have been acquired, evaluating drilling
proposals received for the assets, monitoring the performance of the assets and preparing exit
opportunities for the assets. The fees for these services vary where one investment group covers
much of the overhead expenses incurred by TEP while another is charged a fixed percentage of the
Enterprise Value (as calculated by unreturned capital contributions plus outstanding debt) of the
assets that have been acquired by this investment group. TEP is also responsible for managing third
party service providers where such outside services must be approved in advance by the owner of
the assets. Investors in TEP’s limited partnerships are invested exclusively in investment vehicles
where TEP does not serve as the investment adviser but does provide other asset management
services for a fee. Investors in TEP’s limited partnerships will bear their proportionate share of the
expenses charged by TEP including accounting, banking and legal expenses, as well as their
proportionate share of expenses incurred by the other investment vehicles, including the fees from
TEP’s asset management agreements with those investment vehicles.
Account Minimums and Types of Clients — Form ADV Part 2A (3/25/2024)
[Brochure]
Item 7: Types of Clients
TEP provides its non-discretionary investment advisory services to two large private equity
groups investing in oil and gas assets. TEP also manages three private partnerships on a
discretionary basis that invest in the private funds managed by the two previously mentioned
private equity groups.