How is the manager compensated?
The managers are compensated in the following ways: First, AAI management start-up costs are reimbursed by a $2,500 one-time initiation fee from each new member. Second, on-going organizational and administrative expenses are reimbursed by $2,500 annual membership dues per member. Third, when, and if AAI investment partnerships are formed, the managers are paid an annual fee of 2% of committed capital. The first five years of management fees will be paid at closing (for a total of 10%). In the event of a liquidation event in fewer than 5 years, unearned fees will be returned to investors. For investments lasting beyond 5 years, 2% annual fees will accrue against future distributions. Last, the managers receive a 20% profit participation in AAI investment partnerships.
