H Partners Management manages two private funds intended for sophisticated investors. H Partners has full authority to make investment decisions for the funds, which focus on equity securities, high yield securities, distressed instruments, and company obligations. H Partners typically does not tailor its services to the individual needs of investors in the Funds.
H Partners charges a quarterly management fee to investors in the Funds, which works out to an annual rate between 1% and 2%, depending on the investor's withdrawal rights. This fee is based on the value of the investor's capital account. H Partners also earns an annual performance-based compensation from the Funds equal to 20% of the net profits.