FREQUENTLY ASKED QUESTIONS
WHO IS A QUALIFIED INVESTOR
A qualified investor is specified by Czech national legislation, § 272 of the Act no. 240/2013 Coll., on management companies and investment funds, as amended. Financial institutions (e.g. banks), corporations and individuals with minimum investment set at CZK 1 000 000. If an Investment is below € 125 000, the suitability of such investment for the investor is assessed by a manager or an administrator of the fund; and in the case of the Slovak Republic, then further only an investor who is a professional investor (in Slovak: "profesionálny investor") as specified in Section 8a (2) through (7) of Act no. 566/2001 Coll., on Securities and Investment Services and on the amendment of certain acts, as amended, or an investor as specified in Section 136 (1) (b) of Act no. 203/2011 Coll. on collective investment, as amended.
Minimum duration of an investment. Investor can not apply for mandatory buy-back of investment shares during this period. ARETE INDUSTRIAL lock-in period: 3 years from fund formation (March 2019).
Entry fee paid by an investor. The fee is calculated as % of capital commitment and it can differ for each class of investment shares. Entry fee is accounted for in the first Capital call.
Reward of the fund for generating high yield to an investor. Performance fee is calculated based on the total gross investor's yield (IRR) above the Hurdle rate.
Exit fee paid by an investor for buy-back realised during first five years from shares subscription.