Monetization Strategy

Our Request for Comment process generated a monetization hypothesis to test:

Management fee of 2% of paid in capital. At close, we envision that the SPV admin will:

We will only close a deal if the all-in expense ratio is 10% or lower. The all-in expense ratio is (admin fee + blue sky fees + management fee+ contract analyst expenses) divided by paid in capital. We will aim to maximize invested capital. This will reduce the impact of the relatively fixed portions of the fee structure (admin fee, blue sky fees, contract deal analyst expense). I want us to eventually reach an average all-in expense ratio of 5% or lower

Benefit of this structure:

The first new deal under this structure will launch with one of our new admin provider partners.

First Secondary Deal Published

We have published our first zero carry/management fee secondary deal to the group. The demand (in the form of indications of interest) has been enthusiastic. I’m optimistic on the structure and the sourcing/structuring partner. We may bring more secondary opportunities like this to the group.