Incentive Fee on Income. Pre-incentive fee net investment income falls between the 1.5% quarterly preferred return rate and the upper level breakpoint of 1.875%, therefore the incentive fee on pre-incentive fee net investment income is 100% of the pre-incentive fee above the 1.5% quarterly preferred return.
Incentive Fee on Income. Pre-incentive fee net investment income does not exceed the 1.5% quarterly preferred return rate, therefore there is no catch up or split incentive fee on pre-incentive fee net investment income.
Incentive Fee on Income. The income incentive fee will be calculated and payable quarterly in arrears based on the Company’s quarterly pre-incentive fee net investment income (as defined below) with respect to (1) the calendar quarter in which the Effective Date occurs (the “First Calendar Quarter”) and (2) each subsequent calendar quarter, with the then current calendar quarter and the eleven preceding calendar quarters beginning with the calendar quarter after the First Calendar Quarter (or the appropriate portion thereof in the case of any of the Company’s first eleven calendar quarters that commence after the First Calendar Quarter) (those calendar quarters after the First Calendar Quarter, the “Trailing Twelve Quarters”). For purposes of calculating the income incentive fee, “pre-incentive fee net investment income” is defined as, as the context requires, either the dollar value of, or percentage rate of return on the value of the Company’s net assets at the beginning of each applicable calendar quarter from interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies) accrued during the calendar quarter, minus the Company’s operating expenses accrued for the quarter (including the management fee, expenses payable under the Administration Agreement (as defined below), and any interest expense or fees on any credit facilities or senior unsecured notes and dividends paid on any issued and outstanding preferred shares, but excluding the incentive fee). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with pay in kind (“PIK”) interest and zero coupon securities), accrued income that the Company has not yet received in cash. Pre-incentive fee net investment income excludes any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. Pre-incentive fee net investment income with respect to the First Calendar Quarter will be allocated proportionately over the quarter based on the number of days in the quarter for purposes of calculating the inventive fee below.
Incentive Fee on Income. The Company’s quarterly pre-incentive fee net investment income (as defined below) must exceed a preferred return of 1.50% of the Company’s NAV (6.0% annualized but not compounded) (the “Hurdle Amount”) in order for the Adviser to receive an income incentive fee. The income incentive fee is calculated as follows: • Prior to an Exchange Listing (accrued quarterly and paid upon a Liquidity Event): • no income incentive fee in any calendar quarter in which our pre-incentive fee net investment income does not exceed the Hurdle Amount (1.50% of the Company’s NAV). • 100% of the Company’s pre-incentive fee net investment income for the immediately preceding calendar quarter in excess of 1.50% of the Company’s NAV until the Adviser has received 10% of the total pre-incentive fee net income for that calendar quarter (the “Pre IPO Catch-up Provision”). Pursuant to the Pre IPO Catch-up Provision, when pre-incentive fee net investment income equals 1.6667% in a calendar quarter, the income incentive fee payable to the Adviser equals 10% of pre-incentive fee net investment income. • 10% of our pre-incentive fee net investment income for the immediately preceding calendar quarter in excess of 1.6667% of the Company’s NAV. • After an Exchange Listing (beginning in the first full quarter after the Exchange Listing; accrued and paid quarterly): • no income incentive fee in any calendar quarter in which the Company’s pre-incentive fee net investment income does not exceed the Hurdle Amount (1.50% of the Company’s NAV). • 100% of the Company’s pre-incentive fee net investment income for the immediately preceding calendar quarter in excess of 1.50% of the Company’s NAV until the Adviser has received 15% of the total pre-incentive fee net income for that calendar quarter (the “Post IPO Catch-up Provision”). Pursuant to the Post IPO Catch-up Provision, when pre-incentive fee net investment income equals 1.7647% in a calendar quarter, the income incentive fee payable to the Adviser equals 15% of pre-incentive fee net investment income. • 15% of our pre-incentive fee net investment income for the immediately preceding calendar quarter in excess of 1.7647% of the Company’s NAV.
Incentive Fee on Income. Pre-incentive fee net investment income exceeds the 1.5% quarterly preferred return and the 1.818% upper level breakpoint provision. Therefore the upper level breakpoint provision is fully satisfied by the 0.375% of pre-incentive fee net investment income above the 1.5% preferred return rate and there is a 17.5% incentive fee on pre-incentive fee net investment income above the 1.818% upper level breakpoint. This ultimately provides an incentive fee which represents 17.5% of pre-incentive fee net investment income.
