Taconic Capital Advisors manages investment portfolios for private investment funds offered to high net worth individuals and institutions. Taconic focuses on event investing, which involves investing in companies undergoing significant events expected to impact their value. Taconic manages hedge funds and closed-end funds, investing in mergers, acquisitions, corporate restructurings, credit opportunities, and special situations. Taconic does not tailor its management to the individual needs of any investor in a pooled investment fund.
Fee Structure
Taconic Capital Advisors manages hedge funds and closed-end funds.
With respect to the Hedge Funds, Taconic is generally paid a management fee that ranges from 0.50% to 1.5% per year of the aggregate net asset value of each investor’s capital account or series of shares, as applicable, and the management fee is generally adjusted pro rata for any subscriptions, transfers, redemptions or withdrawals for each month.
With respect to the Closed-End Funds, Taconic is generally paid a management fee of 0.75% to 1.5% per year of called capital invested (at cost), net invested capital (i.e., called capital in respect of investments that have not been disposed of, adjusted for distributions of principal relating to distributions of investments and permanent write-downs or write offs), total assets under management or net asset value.
With respect to the Hedge Funds, Taconic is generally allocated or paid an annual performance-based allocation or fee of 15 to 20% of the net gain earned by each investor subject to a high water mark and, in certain cases, a hurdle rate. With respect to the Closed-End Funds, Taconic is generally allocated or paid a performance-based carried interest allocation or fee of 15% to 20% of the net profits of the applicable Fund subject to a preferred return, catch-up distributions, and/or other performance hurdles as more fully described in the governing documents of each Fund.