Renovus Associates is a private equity firm that focuses on investments in the knowledge and talent industry, specifically companies with $3-10 million in EBITDA. Renovus provides discretionary investment advice to collective investment vehicles. Renovus sources new investment opportunities, makes investment and divestment recommendations, manages the Funds’ assets, and provides reports to the investors.
Fee Structure
Renovus receives management fees and carried interest allocations from the funds it advises. The annual management fee for SBIC Funds is generally 2% of the sum of unfunded and funded capital commitments plus distributions made pursuant to the SBIC Law and drawn and undrawn SBA leverage during the initial investment period. After the initial investment period, Renovus charges a 2% fee on the aggregate cost of investments, subject to certain adjustments. The Continuation Funds pay an investment management fee of 1.5% per year on the limited partners invested capital for a period of time, then 1% per year thereafter. These fees may be reduced by a percentage of certain portfolio company remuneration received by Renovus. Renovus does not receive a management fee for its role as managing member of the Rcap Funds or R Holdco from the funds themselves. However, Renovus is entitled to receive carried interest with respect to each investor equal to 20% of the investment profits the investor receives, subject to satisfaction of an 8% hurdle rate.