Arcadia Investment Partners (AIP) is an investment firm that focuses on investing in alternative asset classes. AIP sources, reviews, and invests in private equity funds, real estate funds, distressed credit funds, direct private equity investments, direct real estate investments, hedge funds, and fund of funds. AIP presents investment opportunities to pre-screened and qualified investors, who then choose whether to participate on a deal-by-deal basis. When there is sufficient interest, AIP structures a stand-alone investment vehicle dedicated to the underlying investment.
Fee Structure
Arcadia Investment Partners invests in alternative assets, typically through investment vehicles. The fees vary based on the underlying investment. Here's a summary of the fee structure for Arcadia-managed investment vehicles:
- Primary Fund Investment: Annual management fee of 1% of capital commitments.
- Secondary Fund Investment: Advisory services fee of 1-3% of capital commitments, plus an annual management fee of 1% of capital commitments.
- Direct Corporate Private Equity: Advisory services fee of 1-3% of capital commitments, plus an annual management fee of 1-2% of capital commitments.
- Direct Real Estate Property: Advisory services fee of 1-3% of acquisition value, plus an annual management fee of 1% of capital commitments.
In addition to these fees, Arcadia receives a carried interest on net profits, typically 10%, after investors have received back 100% of their capital investment plus a preferred return (typically 8-10%). These fees are in addition to any fees charged by the underlying funds.