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To provide long-term capital gains and a regular dividend to investors through investing in growth companies which provide services and technology to the upstream oil and gas industry.
The Investment Management Agreement provides for: (a) a monthly investment management fee of USD110,000; and (b) incentive arrangement under which the Investment Manager will receive, upon realisation of the asset: (i) 7.5% of the increase in value of each portfolio asset between the amount of its valuation at 30-Sep-10 and the lower of the realisation proceeds of the portfolio asset and the equivalent of the amount of its valuation as at 31-Dec-09, and then (ii) in the event that the realisation proceeds exceed the amount of its valuation as at 31-Dec-09, 20% of the increase in value of each portfolio asset between the realisation proceeds of the portfolio asset and the equivalent of the amount of its valuation on 31-Dec-09 as used in (b)(i) above. (c) an incentive arrangement in respect of any portfolio assets purchased subsequent to 01-Jun-11 under which the Investment Manager will receive 20% of the value of all portfolio realisations once the Company has received an amount equal to the aggregate amount invested at cost in the respective portfolio asset plus an additional amount calculated by reference to a hurdle rate of 8% p.a. Any payments due to the Investment Manager under the above paragraphs (b) i and ii and (c) will be subject to an escrow arrangement, initially restricting the Company's cash payments to the Investment Manager to (i) 50% of the calculated amount in respect of any realisation of either Strata or any future portfolio assets, and (ii) 20% of the calculated amount in respect of all other portfolio realisations. Contract terminable on 12 months' notice.