The Company will invest in a diversified portfolio consisting primarily of equity and equity-related securities issued by unquoted companies. Investments will be primarily in equity and equity-related instruments (which shall include, without limitation, preference shares, convertible debt instruments, equity-related and equity-linked notes and warrants) issued by portfolio companies. The Company will also be permitted to invest in partnerships, limited liability partnerships and other legal forms of entity where the investment has equity like return characteristics.
The management fee will be equal to 0.5% p.a. of the NAV by monthly in arrears. The performance fee, 20% of the amount by which the Adjusted NAV at the end of a Calculation Period exceeds the higher of i the Performance Hurdle and ii the High Water Mark. The Agreement may be terminated by either party on not less than six month.
The Directors intend to manage the affairs of Company to achieve Shareholder returns through capital growth rather than income. Therefore, it should not be expected that the Company will pay a significant annual dividend, if any.