The manager of the pooled fund, PARTEQ Angel Network Fund Inc., is not entitled to receive any management fees at any time. Interested earned on uninvested cash is available to be used by the manager to cover the operating costs of the pooled fund and entity. If the earned interest is insufficient to cover costs, the costs will be borne by PARTEQ.
PARTEQ Angel Network Fund Inc., has engaged PARTEQ as an advisor, which includes performing research and due diligence with respect to investment opportunities and disposition opportunities, and advisory services requested by the Investment Committee. As consideration for these services, and the costs associated with implementing the Network, PARTEQ will be entitled to receive 20% of the gains and distributions made to the pooled fund investors. This advisory fee is on an investment-by-investment basis, and is only payable once the investors have recovered the cost of their investment in the particularly investee generating the gain or making the distribution.
In summary, none of the investors’ funds are being used to compensate the manager or PARTEQ, nor are they being used to cover the operating costs of either organization. Only once the investor commences realizing return on an investee company will there be any compensation paid.