Item 5 - Fees and Compensation
vBVP typically charges an annual investment management fee of 1.25% per annum to investors in
the vBVP Funds. Investment management fees applicable to SSDF Funds may vary, and will be
charged in accordance with the relevant SSDF Fund governing documents. Investment advisory
fees for Separate Accounts are negotiable and may vary but will typically be charged as a percentage
of assets.
Investment management fees generally are calculated quarterly and are payable in advance unless
otherwise specified in the relevant Fund governing documents. Certain Clients may pay fixed or
reduced fees. vBVP has waived or negotiated lower fees for certain Clients and Fund investors,
such as owners of single investor funds, charitable organizations, members of vBVP’s Board of
Advisors, employees, and their family members.
More detailed descriptions of each of the Funds and their terms are provided in the Confidential
Offering Memorandum, Limited Partnership Agreement, and/or other governing documents, as
applicable, for such Fund (collectively, the “Operating Documents”). Separate Account investment
advisory fee terms shall be determined based on the investment advisory agreement applicable to
such account (the “IAA”).
While vBVP typically requires a minimum investment amount as stated above, this may be waived
or reduced thereby affecting the amount of fees collected.
vBVP charges investment advisory and management fees quarterly in advance based on the account
value at the beginning of each calendar quarter. The valuation of each Client’s Sub-Manager
Portfolio is ordinarily determined based upon valuations calculated by vBVP and its
administrator(s) based on information provided by Sub-Managers and their administrators monthly,
and by their auditors on an annual basis. Although vBVP reviews the valuation procedures used by
the Sub-Managers, vBVP may not be able to confirm or review the accuracy of such valuations.
vBVP may face a conflict of interest in valuing Clients’ Sub-Manager Portfolios, since those values
may affect vBVP’s compensation. Furthermore, revisions to a Sub-Manager’s gain and loss
calculations will be an ongoing process, and no appreciation or depreciation figure can be
considered final until the audits of the relevant Sub-Manager Portfolio have been completed.
By investing in a Sub-Manager Portfolio indirectly through a Separate Account, a Client, in effect,
bears the asset-based fees, performance-based fees, and expenses of each Sub-Manager Portfolio in
addition to the fees charged by vBVP. Thus, such Client may be subject to higher fees and expenses
than if he or she invested directly in a Sub-Manager Portfolio.
Per the Operating Documents, vBVP is authorized to deduct fees automatically from the Funds.
Separate Accounts will receive an invoice for the advisory fee on a quarterly basis.
If a contribution is received during a calendar quarter, vBVP will prorate the fee for this
contribution. If a Client or investor in a Fund terminates its advisory relationship with vBVP during
a quarterly billing period, vBVP will charge the Client or investor an investment advisory or
management fee for such period that is pro-rated based on the number of days that the account was
active or, if different, pursuant to the terms of the respective advisory agreement or Operating
Document.
In addition to vBVP’s investment management fees, Clients may bear other operating expenses or
fees. Depending on the Client, such expenses may include, but are not limited to, clearing fees; fees,
interest, and other costs on margin accounts or other financings or re-financings; administration,
accounting, and legal fees and disbursements (including legal fees related to the protection of the
Fund’s investments); audit and tax preparation expenses; borrowing charges on securities sold short;
custodial fees; bank service fees; investment-related travel and entertainment expenses; expenses
in connection with proposed transactions (including, without limitation, travel and other due
diligence expenses and expenses relating to investments that fail to close); research fees, including
business data, pricing, and analytics costs; liability insurance premiums with respect to the
Investment Manager and the General Partner; expenses related to the registered office of the Fund,
trustee and related fees, and any other reasonable expenses (as determined by the General Partner
or Managing Member in its sole discretion) related to the purchase, sale, holding, or transmittal of
Fund assets or Fund liabilities. Expenses paid on behalf of a Client by vBVP are reimbursed by
such Client.
In addition, vBVP charges performance-based fees as described below.