Item 5. Fees and Compensation
ASSET BASED FEE SCHEDULE:
Investment advisory fees are based on the following schedule
Investment Management Services
Household Value ($) Annual Fee (%)
$0-$10,000,000 1.00%
$10,000,001-$20,000,000 0.90%
$20,000,001-$50,000,000 0.75%
$50,000,001-$75,000,000 0.60%
$75,000,001-$100,000,000 0.50%
$100,000,001+ CUSTOM
An investment management fee of up to 2% may be charged on client assets held in certain private equity funds.
FLAT ANNUAL FEE:
Business Management Services - based on level of service: $5,000 - $150,000:
In addition to the advisory fee for Investment Management Services, a flat fee for Business Management Services may be
assessed on a monthly or quarterly basis. Fees are deducted directly from the Client's Account unless other arrangements are
agreed upon. Investment Management Fees are deducted directly from the client’s brokerage accounts held at Pershing, LLC.
Business Management fees are deducted from the client’s bank account at First Republic Bank or City National Bank. Please
refer to Item 15 – Custody for more details.
TCM may charge a one-time, fixed consulting fee of up to 5% on the amount of assets a client is investing in certain alternative
or private equity deals. The fixed consulting fee is charged to cover TCM’s time, legal costs and other miscellaneous expenses
incurred.
Fees are typically paid quarterly in advance based upon the market value of the account on the last day of the prior quarter.
When the advisory agreement begins or ends in the midst of a quarter or month, or when material cash flows come into the
account, a pro-rated calculation will be made and the appropriate fee amount will be debited or credited to the account. All
fees are negotiable based on individual client circumstances and at the discretion of TCM.
Investment advisory agreements can be cancelled at any time for any reason, by either party, upon receipt of a 30-day written
notice.
Advisory personnel of TCM, through True Capital Insurance Services (TCIS), an insurance entity licensed in CA, FL, TX,
and NY, may receive commissions for the recommendation of /sale of annuities and other insurance products. Although
TCM’s advisory personnel endeavor at all times to put the interests of the client first, clients are informed and should be
aware that the receipt of commissions, in their separate capacities as insurance agents, itself could create a conflict of interest
and may affect the judgment of these individuals when making recommendations. This conflict of interest is disclosed to
clients.
PRIVATE FUND MANAGEMENT FEES:
TCM does not charge an “investment advisory” fee for serving as investment advisor on the Private Funds. Instead, TCM or
an affiliated TCM Company will serve as General Partner or Managing Member to the Private Funds. As General Partner or
Managing Member, TCM or its affiliate will receive an annual management fee based on the Private Fund’s total assets or
contributed capital, in lieu of an investment advisory fee. The fee generally ranges up to 2% per year based on contributed
capital and continue through the investment period of the Private Fund. The annual management fee is computed quarterly,
and in most cases in arrears. The fee will be deducted directly from the Private Fund. Each Private Fund will set forth its
specific fee structure in its applicable PPM, LLC Agreement as well as in the Subscription Agreement executed by the client.
The client’s fee is calculated based on the amount of the client’s contributed capital and is allocated to the client on a quarterly
basis. The fee expense reduces the client’s capital account balance within the private fund. TCM will charge a fixed fee
ranging up to $50,000 for due diligence conducted on behalf of the True Capital Real Estate Funds.
For clients who invest directly in TCM Private Funds, the value of their investment in the Private Fund will be included in
their overall Investment Management Fee if TCM, or its affiliate serving as General Partner, does NOT charge a management
fee through the private fund. However, if a management fee is charged by TCM or its affiliate directly through the private
fund, the value of the client’s investment in that fund will be excluded from the quarterly investment management fee.
In addition to the annual management fee, TCM may also receive a performance-based fee as described below. Please see