Company: OXLCZ
Filing Date: 2025-02-19
Form Type: 424B2
Source: 0001213900-25-015045
Chunk: 107

Company: Oxford Lane Capital Corp.
Filing Date: 2025-02-19
Form: 424B2
Chunk 107
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2.70% Hurdle rate (1)= 1.75% Management fee (2)= 0.5% Other expenses (legal, accounting, custodian, transfer agent, etc.) (3)= 0.20% Pre -incentivefee net investment income (investment income–(management fee + other expenses)) = 2.00% Incentive fee = 100% × pre -incentivefee net investment income in excess of the hurdle but less than 2.1875% (i.e. the “catch -up” (4)) = 100% × (2.0%–1.75%) = 0.25% Alternative 3: Assumptions Investment income (including interest, dividends, fees, etc.) = 3.00% Hurdle rate (1)= 1.75% Management fee (2)= 0.5% Other expenses (legal, accounting, custodian, transfer agent, etc.) (3)= 0.20% Pre -incentivefee net investment income (investment income–(management fee + other expenses)) = 2.3% Incentive fee = 20% × pre -incentivefee net investment income, subject to “catch -up” (4) Incentive fee = 100% × “catch -up” + (20% × (pre -incentivefee net investment income–2.1875%)) Catch -up= 2.1875%–1.75% = 0.4375% Incentive fee = (100% × 0.4375%) + (20% × (2.3%–2.1875%)) = 0.4375% + (20% × 0.1125%) = 0.4375% + 0.0225% = 0.46% ____________ (1)Represents 7% annualized hurdle rate. (2)Represents 2.00% annualized management fee. (3)Excludes organizational and offering expenses. (4)The “catch -up” provision is intended to provide the investment adviser with an incentive fee of 20% on all of Oxford Lane Capital’s pre -incentivefee net investment income as if a hurdle rate did not apply when its net investment income exceeds 2.1875% in any calendar quarter. 34 Payment of Our Expenses The investment team of Oxford