Performance Calculation
How investor returns and performance fees are computed.
Performance Fee Example
Assume initial NAV/share = 1.000 USDC, HWM = 1.000 USDC:
| Epoch | Gross NAV/Share | Gain above HWM | Perf. Fee (20%) | Net NAV/Share | New HWM |
|---|---|---|---|---|---|
| 1 | 1.0500 | +0.050 | 0.0100 | 1.0400 | 1.0400 |
| 2 | 1.0200 | None (below HWM) | 0.0000 | 1.0200 | 1.0400 |
| 3 | 1.0650 | +0.025 above HWM | 0.0050 | 1.0600 | 1.0600 |
In Epoch 2, the NAV recovered to 1.020 but did not exceed the HWM of 1.040 — so no performance fee was charged. In Epoch 3, only the gain above the HWM (0.025) is subject to the 20% fee.
Investor Return
An investor's return is the change in NAV per share from entry to exit, net of all fees already deducted from the NAV:
Return = (NAV_at_exit - NAV_at_entry) / NAV_at_entry
# Example:
# Entry NAV/share: 1.000
# Exit NAV/share: 1.200
# Return: +20.0% (fees already included)Since both management and performance fees are deducted from the NAV before settlement, the NAV you observe is always the net figure. No additional fee deductions occur at redemption.