Income Component. The income component (the “Income Incentive Fee”) is calculated in arrears for each Performance Period based on the Pre-Incentive Fee Net Investment Income of the Corporation for the immediately preceding Performance Period.
Income Component. The income component is calculated quarterly in arrears based on the Pre-Incentive Fee Net Investment Income of the Corporation for the immediately preceding calendar quarter. Pre-Incentive Fee Net Investment Income shall not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. Once calculated, Pre-Incentive Fee Net Investment Income, expressed as a rate of return on the value of the net assets of the Corporation at the end of the immediately preceding calendar quarter, shall be compared to a fixed “hurdle rate” of 2.0% quarterly. For purposes of this calculation, net assets for any period shall be equal to total assets less indebtedness of the Corporation, before taking into account any Incentive Fees payable during such period. Pre-Incentive Fee Net Investment Income used to calculate the income component of the Incentive Fee shall also be included in the amount of the total assets of the Corporation used to calculate the 1.375% Base Management Fee. For purposes of this calculation, total assets of the Corporation shall exclude cash and cash equivalents and shall include assets purchased with borrowed funds. The income component of the Income and Capital Gains Incentive Fee Calculation with respect to the Pre-Incentive Fee Net Investment Income of the corporation shall be calculated quarterly, in arrears, as follows: • zero in any calendar quarter in which the Pre-Incentive Fee Net Investment Income does not exceed the hurdle rate; • 100.0% of the Pre-Incentive Fee Net Investment Income of the Corporation with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle rate but is less than 2.5% in any calendar quarter; and • 20.0% of the amount of the Pre-Incentive Fee Net Investment Income of the Corporation, if any, that exceeds 2.5% in any calendar quarter. The portion of the Pre-Incentive Fee Net Investment Income which exceeds the hurdle rate but is less than 2.5% is the “catch-up” provision. These calculations shall be appropriately adjusted for any share issuances or repurchases during the quarter (based on the actual number of days elapsed relative to the total number of days in such calendar quarter).
Income Component. The income component is calculated quarterly in arrears based on the Corporation’s Pre-Incentive Fee Net Investment Income for the immediately preceding calendar quarter. Pre-Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. Once calculated, Pre-Incentive Fee Net Investment Income, expressed as a rate of return on the value of the Corporation’s net assets (defined as total assets less indebtedness and before taking into account any incentive fees payable during the period) at the end of the immediately preceding calendar quarter, is compared to a fixed “hurdle rate” of 2.0% quarterly. The Pre-Incentive Fee Net Investment Income used to calculate this part of the incentive fee is also included in the amount of the Corporation’s total assets (other than cash and cash equivalents but including assets purchased with borrowed funds) used to calculate the 1.375% base management fee. The income component of the Income and Capital Gains Incentive Fee Calculation with respect to the Corporation’s Pre-Incentive Fee Net Investment Income is calculated quarterly, in arrears, as follows: • zero in any calendar quarter in which the Pre-Incentive Fee Net Investment Income does not exceed the hurdle rate; • 100.0% of the Corporation’s Pre-Incentive Fee Net Income with respect to that portion of the Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle rate but is less than 2.5% in any calendar quarter; and • 20.0% of the amount of the Corporation’s Pre-Incentive Fee Net Investment Income, if any, that exceed 2.5% in any calendar quarter. These calculations are adjusted for any share issuances or repurchases during the quarter.
