Prophet Equity Management II LLC (PEM) advises Prophet Equity II LP, a fund focused on acquiring controlling equity positions in underperforming lower-middle-market companies. PEM's services include evaluating investment opportunities, structuring acquisitions, managing investments, and executing divestitures. Investment decisions are made for the Fund, not based on individual investor needs.
Fee Structure
PEM does not directly manage investments for individual investors. They manage a fund, Prophet Equity II LP, and receive an annual management fee. During the initial investment period, this fee was 2% of total capital commitments. After the initial investment period, the fee is 2% of total capital contributions used to make investments, less distributions constituting returns of capital and certain write-offs. The management fee is subject to offsets for investment banking fees, directors’ fees, and other net fee income.