Page 19 - Praetura IM EIS2019 DRAFT

Fund Charges Explained

Charges payable by the Investor Charges payable by the Investee Company

• Initial Charge Arrangement Fee
An initial fee of up to 2.5% will be charged to A one-time arrangement fee of up to 4% of funds
Investors in the Fund. This will be payable to the invested will be payable to the Fund Manager by the
Fund Manager prior to investment in the Investee Investee Companies upon investment.
Companies and therefore will reduce the EIS relief
available to Investors. This fee is to cover all initial • Monitoring Fee
legal, professional and transaction costs.
An annual fee will be payable by an Investee Company
at a rate of 1% of funds invested, subject to
• Annual Management Charge a minimum annual charge of £36,000.
An annual management charge of 2% of funds
invested will be charged and taken one year in
advance. VAT
VAT will be charged on all applicable
fees and charges at the
• Advisor Charges & Intermediary Commission prevailing rate. Performance Fee
If an Investor requests that a payment is made to their In order to align interests between the Fund Manager and
financial advisor or intermediary for advice received, this the Investors, no performance incentive is payable until the
will be deducted from the Investor’s subscription monies. underlying Investee Companies have achieved a hurdle rate of
Any fees payable to an advisor will reduce the Initial
Charge and Annual Management Charge accordingly. 30% growth on the capital deployed.

Thereafter, the Fund Manager will be entitled to 20% of profits
above this hurdle.

The performance fee is charged in respect of the cumulative
Fund performance, as opposed to being payable in respect of
each individual investment within the Fund.