Item 5 – Fees and Compensation
TAM charges a fixed-percentage fee per annum for investment advice based on assets under management.
All fees, which are calculated based on the market value of the account on the last business day of the month,
are currently billed monthly in arrears and deducted from Client accounts maintained at Pershing Advisor
Solutions, LLC, the institutional custodian (and “Qualified Custodian”) engaged by TAM Clients. Typically,
advisory fees are not negotiable. Fees for advisory services are generally prorated for any partial billing
period. If an account is opened or closed during a billing period, the advisory fee will be calculated on a pro
rata basis based on the number of days the account was managed during that period, unless otherwise
agreed in writing. Either party may terminate the advisory relationship at any time in accordance with the
advisory agreement. Upon termination of the advisory relationship, fees billed in arrears will be calculated
through the effective date of termination, and any prepaid fees, if applicable, will be refunded on a prorated
basis.
TAM charges performance-based fees in addition to asset-based fees to its Private Funds which, in turn, may
invest primarily if not exclusively in private companies or private investment opportunities which are usually
described as “alternative investments,” or in strategies comprising publicly traded securities. Where we
allocate assets of Trust Clients to our Private Funds, such fees are in addition to the fees directly charged to the
Trust Clients with respect to such assets, and therefore such Trust Clients will effectively pay two levels of fees
to TAM with respect to the same assets. For complete details regarding the Private Funds, including fee
schedules, please see the respective Fund’s offering documents.
Fee Schedules
The following describes TAM’s basic advisory fee schedule. The fees for the Private Funds can be found in
each Private Fund’s offering documents.
TRUST ASSET MANAGEMENT
FORM ADV, PART 2A
SMA and Trust Clients:
Minimum Acct Size: None
All Dollar Ranges (Non-Texas accounts): 0.00% to 1.00% for all Clients
All Dollar Ranges (Texas accounts): 0.00% to 1.30% for all Clients
Private Funds:
Minimum Investment: None
All Dollar Ranges: 1.00% to 1.75% for all Clients
For the Private Funds, TAM also charges performance-based fees, as described in Item 6 below.
Other Fees and Expenses
In addition to the management fee (and performance-based compensation, as applicable), a Client account
is responsible for any fees, expenses, or charges incurred by or on behalf of the account related to (i) custodial
services provided for the account, (ii) costs and expenses relating to securities transactions effected for the
account, including brokerage and execution charges, markups and commissions, and (iii) any other service
provided for the account by any person other than TAM. For additional information regarding brokerage and
execution charges, see Item 12 below.
Item 6 - Performance-Based Advisory Fees and Side-By-Side Management
For the Lighthouse Funds, TAM is entitled to receive a quarterly performance based fee (the “Performance
Fee”) from each member’s capital account. Performance-based fees are charged only to investors who satisfy
the requirements of Rule 205-3 under the Investment Advisers Act of 1940, including the definition of
‘Qualified Client,’ where applicable. The Performance Fee is equal to 10% of the net increase, if any, with
respect to the member’s capital account; provided, however, that the net increase upon which the calculation
of the Performance Fee is based shall be reduced (but not below zero) to the extent of any unrecovered balance
remaining in the Loss Recovery Account (as defined below) maintained on the books and records of the
Lighthouse Fund with respect to such member. In the event that a member withdraws all or a portion of its
capital account effective as of a date other than the beginning of a calendar quarter, except as may otherwise
be determined by TAM a Performance Fee determination shall be made with respect to the withdrawn
amount and the capital account of the withdrawing member shall be adjusted (if applicable) as if the effective
date of such member’s withdrawal were the last day of a calendar quarter. At the discretion of TAM, the
Performance Fee may be waived or reduced with respect to any member or members, including TAM (and
its affiliates, and its and their respective managers, members and employees), members of the immediate
families of such persons or trusts or other entities for their benefit.
A memorandum account will be established on the books of the Lighthouse Funds in respect of each member
(a “Loss Recovery Account”), the opening balance of which shall be zero. At the end of each calendar quarter
or at such other date during a calendar quarter as the calculation of the Performance Fee is required to be
made for such member, after such Performance Fee is calculated the balance in each Loss Recovery Account
shall be adjusted as follows: (i) if there has been net decrease with respect to such member for such calendar
TRUST ASSET MANAGEMENT
FORM ADV, PART 2A
quarter or other period, the balance in the Loss Recovery account shall be increased by an amount equal to
such net decrease; or (ii) if there has been net increase with respect to such member for such calendar
quarter or other period, the balance in the Loss Recovery account shall be reduced by an amount equal to
such net increase, but not beyond zero.
In the event that a member withdraws a portion but not all of its capital account, if there is an unrecovered
balance in the member’s Loss Recovery Account after the Performance Fee is calculated with respect to the
withdrawn amount and any related adjustment is made to the Loss Recovery Account with respect to any
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