Fees and Compensation — Form ADV Part 2A (10/21/2019)
[Brochure]
Item 5 ‐ Fees and Compensation
Trilogy receives a management fee for managing the Funds at an annual rate of 1.5% of the capital
account balance of each limited partner or member. Trilogy Capital Partners receives a
performance fee of 20% of net new appreciation (such profits are calculated annually). Note,
however, that Trilogy employees who invest in a Trilogy fund have had fees waived or reduced;
note also that investors in separately managed accounts may or may not pay a different
performance fee.
Fees are deducted from investor assets in the private funds. Specifically, Trilogy’s authorized
agent directs the Funds’ independent administrator MUFG Alternative Fund Services (Cayman)
Limited (“MUFG”) to deduct the fees from the assets of the Funds and to pay Trilogy or Trilogy
Capital Partners (depending on the fee). Investors in the private funds cannot elect to be billed for
fees. The owners of the separately managed accounts pay their fees directly.
The 1.5% management fee does not cover all costs and expenses of the Funds or accounts. The
Funds (and by extension their limited partners/member) and account holders pay directly for
legal fees, auditors’ fees, custodian fees, brokerage and other transaction costs, and other fees.
(Please see the section of this Brochure entitled “Brokerage Practices” for more disclosure
concerning brokerage and transaction costs and practices.) Such additional fees are deducted
from the Funds’ assets by the Funds’ independent administrator at the direction of Trilogy’s
authorized agent, who directs the payments to the appropriate recipients. Owners of the
separately managed accounts are responsible for payment of any such additional fees attributable
to their accounts.
Management fees are calculated and payable quarterly in advance. In addition, a pro rata portion
of the management fee will be paid out of any capital contributions made by new or existing limited
partners to the Funds on any date other than the first business day of each fiscal quarter (which in
all cases would be the first day of the month) based on the number of months remaining in the
fiscal quarter. In the event of a withdrawal by a limited partner from the Funds prior to the end of
a fiscal quarter (which in almost every case would be the end of a month), a pro rata portion of the
management fee (based on the number of months remaining in the fiscal quarter) will be repaid by
Trilogy to the affected Fund and distributed to the withdrawing limited partner.
Trilogy and its employees, including “supervised persons,” do not accept compensation for the sale
of securities or any other investment products.
Account Minimums and Types of Clients — Form ADV Part 2A (10/21/2019)
[Brochure]
Item 7 ‐ Types of Clients
Trilogy provides investment advice to hedge funds and separately managed accounts. These clients
have investors of various types, which may include family foundations or trusts, pension plans, and
various types of institutions. All investors must be accredited. The minimum investment in the
Funds is $5 million, which may be waived by the General Partner (Trilogy Capital Partners) in its
sole discretion.