Reciprocal Capital identifies private secondary opportunities through research and analysis. Once identified, Reciprocal Capital presents the opportunity to its clients. If the client determines the investment is suitable, the client and Reciprocal Capital execute an agreement with respect to the proposed transaction. Reciprocal Capital provides ongoing due diligence and monitoring, and will provide investment advice to the Client relating to the transaction/investment. In some situations, as part of the transaction, Reciprocal Capital may participate or serve on the Advisory Board.
Fee Structure
Reciprocal Capital clients are sometimes billed a management fee, typically 0.60% per year on the investor’s aggregate capital commitments to a transaction for three years. Reciprocal Capital also charges a performance fee based on a European Waterfall calculation. The standard preferred return is 8% cumulative. A performance fee of 5% of net investor gains will be paid to Reciprocal Capital once the preferred return has been achieved. An additional performance fee of 10% of net investor gains will be paid to Reciprocal Capital once investors have received 1.5 times their entire contributions to the transaction.