Third Point Offshore restructures to cut fees – Third Point Offshore Investors has announced that, as of January 1, 2019, it will switch its entire portfolio into a newly-created share class of the underlying Master Fund managed by Dan Loeb and his team.
The new share class will be subject to a 25% quarterly redemption gate. The company will plan to redeem an appropriate amount each quarter to account for planned share buybacks and to cover fees and expenses. The new share class will attract a lower management
fee and the company will also qualify for an additional reduction of management fee applicable to it based on its size and longevity as an investor in the Master Fund. As a result, the Company’s management fee will be reduced from 2.0% to 1.25% per annum commencing in 2019. The terms of the performance fee will remain unchanged.
Separately, the board says it has made significant progress in the process of identifying the best candidate for the position of chairman and expects to announce the new chairman appointment in January 2019.
Claire Whittet, the interim chairman, commented: “The board is very pleased with the benefits the significant reduction in fees will provide for
the company and its shareholders. We believe this change should help improve the company’s rating and further align shareholders with the investment manager’s strong risk-adjusted track record of investment returns.”
TPOU : Third Point Offshore restructures to cut fees