Equalisation Credit Method client Course Outline*

Duration: Half day When: This half-day workshop tackles the complexities of the equalisation credit method of calculating and allocating performance fees. The session focuses on a number of fully worked examples that deal with the most common scenarios you will come across in hedge funds that use the equalisation credit method. At the end of this course participants will be able to Explain to investors and colleagues how the equalisation credit method operates Calculate and allocate fees using the equalisation credit method Calculate crystallisation amounts on redemption and at the end of a performance period Incorporate fixed and variable hurdle rates Incorporate tiered performance fee structures Discuss the logic, the benefits and the drawbacks of the equalisation credit method Account for performance fees Identify potential errors that can arise in the calculation and accounting of performance fees using the equalisation credit method Discuss measures to prevent such errors

Participants will be required to complete individual and group exercises throughout the session. Agenda Basic performance fee calculation Prior high watermark The problem is allocation What does the prospectus say? Crystallisation Equalisation credit/adjustment method Equalisation credits and additional performance fees Fixed and variable hurdle rates Tiered structures Equalisation scenarios Resets Risk & control issues the thing about spreadsheets is

Who should attend? Experienced fund administrators who require a greater understanding of the mechanics of how performance fees are calculated and allocated using the equalisation credit method.

*subject to change

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