Services and fees

Ongoing costs of the Fund

Responsible Entity fee & administration fee

K2 Asset Management Limited, as Responsible Entity (RE) of the Fund, is responsible for the operation and administration of the Fund and is entitled to receive a responsible entity fee of 0.05% per annum and an administration fee of 0.225% per annum. Both fees are calculated on the gross asset value of the Fund and are exclusive of GST.

General Partner fee

The General Partner, US Select Private Opportunities Fund II GP, LLC (GP), is responsible for selecting and managing investments to be made by the limited partnership, US Select Private Opportunities Fund II, LP (LP), including investments to be made by the Fund. As sole GP of the LP, the GP is entitled to receive a management fee equal to 2% per annum of the total capital committed by the limited partners to the LP. This will comprise the capital commitment of the Fund and Cordish Private Ventures.

This fee is to be paid quarterly from the funds of the LP and is only payable for a 10-year period from the Fund’s inception.

Underlying fund manager fees and expenses

The GP is entitled to be reimbursed, out of the assets of the LP, for all out-of-pocket expenses it properly incurs in operating and administering the Fund. This includes the fees charged by underlying fund managers associated with the performance of their management functions. The LP may also be required to pay performance fees to the underlying fund managers.

The underlying fund managers in which the Fund, through the LP, invests are entitled to be reimbursed, out of the assets of the LP, for all out-of-pocket expenses they properly incur in connection with the investment and management of the underlying funds.

Expenses relating to the management of the Fund

The RE is entitled to be reimbursed, out of the assets of the Fund, for all out-of-pocket expenses it properly incurs in operating and administering the Fund. This includes expenses such as taxes and bank fees, preparation of financial statements and tax returns, and compliance costs.

Expenses relating to the management of the LP

The GP is entitled to be reimbursed, out of the assets of the LP, for all out-of-pocket expenses it properly incurs in operating and administering the LP. This includes the fees charged by the underlying fund managers, entry fees, transaction fees, exit fees, ongoing management and performance fees.

For further information about the fees and costs please refer section 7 to of the Product Disclosure Statement.

Ongoing costs of the Fund

Responsible Entity fee & administration fee

K2 Asset Management Limited, as Responsible Entity (RE) of the Fund, is responsible for the operation and administration of the Fund and is entitled to receive a responsible entity fee of 0.05% per annum and an administration fee of 0.225% per annum. Both fees are calculated on the gross asset value of the Fund and are exclusive of GST.

General Partner fee

The General Partner, US Select Private Opportunities Fund III, GP (GP), is responsible for selecting and managing investments to be made by the limited partnership, US Select Private Opportunities Fund III, LP (LP), and hiring external advisors, agents and employees as required. As sole GP of the LP, the GP is entitled to receive a management fee equal to 1% per annum of the total capital committed, including capital committed by the limited partners to the LP. The Fund will only be obligated to pay 1% of its total capital committed.

This fee is to be paid quarterly out of the funds of the LP and is only payable for a 10-year period from the Fund’s inception.

Underlying fund manager fees and expenses

The GP is entitled to be reimbursed, out of the assets of the LP, for all out-of-pocket expenses it properly incurs in operating and administering the Fund. This includes the fees charged by underlying fund managers associated with the performance of their management functions. The LP may also be required to pay performance fees to the underlying fund managers.

The underlying fund managers in which the Fund, through the LP, invests are entitled to be reimbursed, out of the assets of the LP, for all out-of-pocket expenses they properly incur in connection with the investment and management of the underlying funds.

Performance fee

The GP is also entitled to a performance fee of 10% of the return achieved by the LP above a hurdle rate equal to a cumulative, non-compounded, pre-tax return of 8% per annum on all capital contributed to the LP (and not yet returned by distribution to limited partners). Investors should note that the hurdle rate references to the LP, not the Fund level, and is denominated in US dollars.

Expenses relating to the management of the Fund

The RE is entitled to be reimbursed, out of the assets of the Fund, for all out-of-pocket expenses it properly incurs in operating and administering the Fund. This includes expenses such as taxes and bank fees, preparation of financial statements and tax returns, and compliance costs.

Expenses relating to the management of the LP

The GP is entitled to be reimbursed, out of the assets of the LP, for all out-of-pocket expenses it properly incurs in connection with the investment and management of the LP. This includes expenses such as transaction fees, duties, taxes, commissions, and brokerage.

For more information about the fees and costs please refer to section 5 of the Product Disclosure Statement.