Align Incentives for Mutual Benefit

Charging an initial low fee ensures that clients only pay more when investment performance exceeds the market benchmark. This fee structure fosters trust and alignment between the investor and the manager, balancing the interests of both parties. The combination of a fixed fee and a performance-based component incentivizes the investment manager to pursue significant alpha generation while still catering to the market's demand for passive investment options. This model attracts a large pool of capital that seeks growth through long-only and private equity strategies, supporting a business approach that emphasizes both risk management and reward sharing.