Redwood Capital Management is an investment management firm that invests in credit and other opportunities in stressed and distressed companies. Redwood provides advisory services on a discretionary basis to its clients, which are primarily master investment funds, feeder funds, and a business development company. The advice Redwood provides is tailored to each fund's investment objectives and guidelines.
Fee Structure
Redwood Capital generally charges a management fee quarterly, billed either in advance or in arrears. The management fee is generally 1.0%-1.50% per year depending on the fund, based upon the net asset value of the shares or interests of each fund held by investors. Redwood or its affiliate may also receive annual performance-based compensation of up to 20% of the realized and unrealized net profits of a fund or a portion of the distributions of the net profits of a fund.