As Manager of the Holding Companies, Charon Griffin Financial Management Sarl, will charge a management fee of 1% of the invested capital of each Holding Company per year.
If the Holding Company has a share capital or equity of 1 million, has invested 900,000 in subsidiaries and holds 100,000 in cash or other short term receivables, the 1% annual fee will only be calculated on the 900,000 actually invested capital.
This will be calculated every month (average invested capital during the month) and charged once a quarter (so roughly 0.25% per quarter).
This fee is independent of the return on the invested capital.
As Manager of the Holding Companies, Charon Griffin Financial Management Sarl, will charge a Success Fee of 4% of the actual realized profits of each Holding Company per year.
If the Holding Company reports a profit of 200,000 at the end of the financial year, Charon Griffin is entitled to 4% of that profit (8,000) and 96% (192,000) is free for reinvestments or dividend distribution.
The full 4% success fee is subject to a claw-back provision for one full financial year, i.e. if in the following year the Holding Company would report a loss, (a proportional part of) the success fee will be returned to the Holding Company.
This fee is independent of the amount of capital invested.
Other costs and taxes
Any and all costs incurred by the individual Holding Companies are directly charged to that Holding Company (no mark-up by Charon Griffin). This includes, but is not limited to, legal fees, external service provider fees (accountants etc.) and taxes.
Please note that also Charon Griffin’s Management Free and Success Fee are charged to the Holding Companies, not to the individual investors, and are tax deductible costs for those Holding Companies (depending on the tax jurisdictions).