P10 Industries Inc. (PX)

[value1008]

Hi Chemist, first off, let's remember that several of the RCP Funds, created before 2011, are managed/advised and compensated by RCP 1, not relevant to PIOE.

Now to your question about the non-discretionary accounts that RCP 2 & 3 manage/advise, here below are some passages from the most recent ADV Brochure for RCP 2&3.

I'm fairly confident that at least one of the "Separate Account clients" is the Australian sovereign wealth fund, the Future Fund.

In these Separate Accounts, i believe that RCP may be reducing or eliminating the AUM mgmt fee and instead getting compensated by a performance fee (carry interest) at some later point or points in time as the investment account matures and shows either realized or unrealized gains. The terms seem to be individually negotiated with the given client.

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In addition to managing the RCP Funds, RCP also provides non-discretionary advisory services to clients by recommending investments in private equity funds and co-investment opportunities.
As used herein, the term “clients” refers to the RCP Funds and any Separate Accounts (as defined below), whether discretionary or non-discretionary, unless the context requires otherwise.
With the exception of the SBIC Fund, the RCP Funds are primarily focused on the lower middle market buyout segment of the private equity market. The RCP Funds fall into six categories (and RCP’s investment advisory services are limited to these six categories) described below and in Item 8 (Methods of Analysis, Investment Strategies and Risk of Loss). A Separate Account may follow one or more of these strategies. [...]
In addition to the commingled RCP Funds, RCP has established separately managed accounts (“Separate Accounts”). Unlike the RCP Funds, Separate Accounts (i) tailor their investment objectives to the specific needs of the Separate Account client (as set forth in an investment advisory agreement or other governing document) and/or (ii) are subject to different terms and fees than those of the RCP Funds. Such Separate Account investment objectives and restrictions, fee schedules and terms are individually negotiated. Separate Accounts are generally subject to significant account minimums, as described in Item 7, “Types of Clients.”
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