Fees & Charges
Management and administration
Details of the management, administration, monitoring, arrangement and performance fees charged by Livingbridge VC LLP (“the Manager” or “Livingbridge”) and co-investment arrangements are shown in the “Report of the Directors” section of the Company’s Annual Report and Accounts which are available in the “Report and Accounts” section on this web site. A summary of the fees and charges is shown below.
Annual running costs
Annual running costs, including fees payable to Livingbridge, Directors’ fees, professional fees and the costs incurred by each Company in the ordinary course of business (but excluding any performance fees payable to the Manager and irrecoverable VAT), are capped at 3.5 per cent of the Company’s net assets, any excess being met by Livingbridge by way of reduction in future management fees.
Livingbridge is paid an annual management fee which will be increased from an amount equivalent to 2.0 per cent of the net asset value of the Company to 2.5 per cent. (through an increase of 0.1 per cent. of the net asset value of the Company on the date on which the Company made its first investment in an unquoted company (18 October 2011) and a further increase of 0.1 per cent. of the net asset value of the Company on each anniversary thereafter).
The ongoing charges ratio as at 31 December 2015 was 3.2 per cent (2014: 3.0 per cent). This percentage is stated with reference to the average total shareholder funds over the last financial year.
The Manager is currently entitled to a performance fee of 10 per cent of the excess of the total return to Shareholders exceeding 8 per cent per annum (on a simple not compound basis).
Total return for the purposes of calculating the performance fee entitlement means the NAV of the Company, calculated on the assumption that any dividends paid by the Company are re-invested by subscription for new Shares at NAV per share. Such performance fee will not be triggered, however, until the total return on the net proceeds of the initial offer of the Company’s Shares exceeds 140 per cent. The performance fee payable in respect of any period for which it is calculated shall not exceed 5 per cent of the NAV of the Company for that period and any balance remaining unpaid is carried forward to the next calculation. No performance fee was payable for the year to 31 December 2015.