BC Advantage Funds (VCC) Ltd.

BC Advantage Funds (VCC) Ltd.

March 08, 2011 15:36 ET

BC Advantage Funds (VCC) Ltd.: Lions Capital Reduces Management Fees and Waives Performance Fees

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 8, 2011) - Lions Capital has voluntarily agreed to reduce the management fee it is paid by Advantage from 2.75% to 1.25% in respect of all capital that is eligible for, but currently suspended from, redemption. The management fee in relation to capital that is not yet eligible for redemption will remain at 2.75%. Lions Capital has also volunteered to waive its performance fees until redemptions have been reinstated. If Lions Capital earns performance fees in the interim, the fees will be accrued but will not be paid until redemptions are reinstated.

David Raffa, Lions Capital Partner, noted, "We offered to reduce our management fees and to waive our performance fees because we believe it is the right thing to do. The current lack of liquidity in the venture stage private and public markets has made it very difficult for us to achieve sufficient liquidity to meet redemptions. This has impacted our investors whose shares are eligible for redemption and we have reduced our fees to show we are willing to share in the pain, and to retain as much value as possible in Advantage for when redemptions are reinstated. With Advantage now closed, we are directing all of our efforts towards building the value of our portfolio companies and driving them to liquidity."

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