Additional Representative Disclosures

Additional Representative Disclosures

TO FORM CRS OF FPCG, LLC (CRD 122341)
JUNE 30, 2020

What Fees Will I Pay?
A Private Investment Fund structured as a Hedge Fund will typically charge a quarterly management fee in the range of 0-3% per annum on the net asset value of the fund attributable to the capital account of the investor. In addition, typically, a performance fee structured as carried interest is charged to each investor’s capital account at the rate of 20% of profits allocated to the capital account of such investor. As referenced in the Form CRS, the actual fees that are charged to an investor for an investment in a Hedge Fund will be more fully described in its private placement memorandum and could be higher than the generic ranges of such fees described above.

In addition to the fees described above, whenever FP is engaged by a Client for the purposes of soliciting eligible investors to invest in a Private Investment Fund managed by such Client, such Client will pay FP a Placement Fee, which may or may not be charged to the investor in such Private Investment Fund. Such Placement Fee is disclosed in the private placement memorandum of a Private Investment Fund; however, they generally range from 1% to 3% of the committed or invested capital of an investor solicited by FP. However, in certain situations, FP, in addition to receiving a placement fee, may receive a fixed retainer fee as well as a certain percentage of equity interest in the Client which may give FP a certain percentage interest in the investment management fee and performance fee earned by such Client. FP may also earn a placement fee in respect of any co-investment opportunity offered by a Client to a potential investor solicited or introduced by FP to a Client. Additionally, there may be a varied fee structure based on the type of Client – for example, no fee will be chargeable for any investor that is a friend or family member of a Client. In addition, a lower fee will be charged for certain investors that are jointly solicited by a Client or its affiliates or other agents. The actual placement fee charged to a Client may be higher than those mentioned above.

What are your legal obligations to me when providing recommendations as my broker-dealer? How else does your firm make money and what conflicts of interest do you have, and if such conflicts exist, how might they affect me and how are they addressed?
Being a broker dealer, FP will enter into placement arrangements with a number of Clients. Such placement arrangements will have varied fee structure with its Clients as described above. Depending on a fee structure that FP may have in respect of an Private Investment Fund or a Client, FP may through a more favorable fee structure be incentivized to promote such Private Investment Fund or Client over other similar opportunities. Such varied fee will create conflicts of interest in how FP promotes certain investment opportunities relative to others for which it provides similar placement services. Further, marketing representatives of FP are incentivized to promote or solicit interest internally through commissions paid in respect of various Clients or Private Investment Fund. Such commissions may create varied incentives for such marketing representatives to market or promote Private Investment Funds or Clients. Accordingly, depending on the amount of commissions that a marketing representative soliciting an interest of an investor receives would create certain conflict of interest based on which marketing representative is assigned to solicit the interest of a potential investor. FP will monitor this in an effort to avoid any disadvantage to you.