Item 5 Fees and Compensation
While fee structures may vary depending on the type of client, the typical fee structure for a Wolf Point
Fund consists of (1) a management fee, which is based on a percentage of a Fund’s aggregate investor
commitments or a Fund’s underlying Net Asset Value (“NAV”); and (2) carried interest, which is a
performance-based allocation. Wolf Point also may receive a management fee based on assets of underlying
private equity funds to which Wolf Point or a Wolf Point affiliate may provide portfolio monitoring and
reporting services.
Management Fee
Wolf Point provides investment advisory services to private equity fund-of-funds (“Funds”). Wolf Point is
typically paid a management fee up to 1% of a Fund’s aggregate investor commitments or a management
fee based on a Fund’s NAV. Funds typically pay management fees quarterly, in arrears, commencing on a
Fund’s first closing date or effective date, and continuing through an anniversary of the first closing date
or effective date, as set forth in the Fund’s offering materials. For Funds where the management fee is based
on aggregate investor commitments, the management fee may be reduced after a certain number of years.
For Funds where the management fee is based on a Fund’s NAV, the management fee may increase or
decrease during the Fund’s term. The rates at which Wolf Point’s fees are charged and the timing of the
payments may vary among Funds.
Wolf Point may agree to reduce its management fee with respect to investors committing a minimum
amount to a Wolf Point Fund, as set forth in a Fund’s offering materials or governing documents. Wolf
Point may reduce or structure differently the management fee payable by any investor, without notice to or
consent of other investors.
Wolf Point may also provide investment monitoring and reporting services to Funds that are already
invested in private equity funds. Wolf Point receives a management fee for monitoring and reporting and
for providing investment advice to the general partners of such Funds.
Carried Interest
Wolf Point may receive carried interest up to 10% from investors after such investors have received
distributions equal to the amount of their respective capital contributions, plus their respective applicable
preferred return. The profit share and preferred return may vary by Fund. In addition, the preferred return
may vary across investors.
Other Fees and Expenses
In addition to the management fee and carried interest payable to Wolf Point, the Funds to which Wolf
Point provides investment advisory services shall bear certain expenses. Subject to the applicable
partnership agreements, each Fund generally bears other expenses, including, but not limited to,
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organizational, legal, compliance, regulatory, accounting, reporting, tax, auditing, travel, consulting,
research, brokerage, banking, custody, transfer, computer software and IT related expenses, registration,
insurance, advisory board, interest, taxes and extraordinary expenses (such as litigation and indemnification
of the general partner of a Wolf Point Fund), but not Wolf Point’s expenses in connection with maintaining
and operating its office (such as compensation of employees, rent, utilities and general office expenses).
All fees and costs associated with the launch of a Fund, including all professional fees and expenses in
connection with the preparation of the offering materials will be paid by the Fund and will be amortized
over a period of five years from the date of the Fund’s launch. Wolf Point believes that such treatment is
more equitable than expensing the entire amount as such costs were incurred.