Gates Capital manages investments for domestic and offshore limited partnerships (the Funds). They focus on event-driven equities and debt, seeking undervalued securities and shorting overvalued ones. Investment decisions are made for the Funds as a whole, not for individual investors within the Funds. The firm utilizes risk management tools like liquidity requirements and leverage limits.
Fee Structure
Gates Capital manages investments for its Funds and receives a management fee for these services. Investors in these funds are charged either 1.0% or 1.5% annually, depending on liquidity terms, based on the net asset value. In addition to the management fee, the Funds are charged a performance fee of up to 20% of the net profits attributable to each investor’s capital account, subject to a highwater mark.