III Capital Management advises private investment funds, managed accounts, and dedicated funds for institutional investors and high-net-worth individuals. III invests client capital across six general strategy groups: fixed income/rates strategies, asymmetric or convexity strategies, long-only credit, long/short or relative value credit, Equity Market Neutral, and Macro-Credit. III does not participate in wrap fee programs.
Fee Structure
III Capital Management manages investments for managed accounts and dedicated funds. The fees for these services are typically based on a percentage of the assets managed, similar to the fees charged to the private investment funds they advise. Fees for dedicated funds in Long-Only Credit are similar to the COP Funds (III Credit Opportunities Fund L.P., III Credit Opportunities Fund Ltd.). Managed Accounts are primarily in Long-Only Credit and pay fees similar to the COP Funds, although fees are lower for some Managed Accounts that focus on higher-rated securities. Dedicated funds in Rates, L/S Credit, EMN and Convexity generally pay a management fee of up to 1.5% annually. Some dedicated funds pay lower management fees or even zero management fee, typically in exchange for a higher incentive fee (or performance-based compensation). In a few cases, III only receives performance-based compensation with a minimum “floor” that acts like a management fee if performance does not generate fees in excess of the “floor.”