Item 1: Introduction

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STONE TEMPLE PARTNERS LLC is an investment adviser registered with the U.S. Securities and Exchange Commission offering advisory accounts and services. Brokerage and investment advisory services and fees differ, and it is important that you understand the differences. This document gives you a summary of the types of services and fees we offer to retail clients. Please visit www.investor.gov/CRS for free, simple tools to research firms and financial professionals, as well as educational materials about broker-dealers, investment advisers, and investing. 

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Item 2: Relationships and Services

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Questions to ask us: Given my financial situation, should I choose an investment advisory service? Why or why not? How will you choose investments to recommend to me? What is your relevant experience, including your licenses, education and other qualifications? What do these qualifications mean? 

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What investment services and advice can you provide me? Our firm offers investment management and advisory services, primarily to private wealth clients: portfolio management; wealth management (we evaluate your portfolio, investment strategy, and investments); and financial planning (we assess your financial situation and provide advice to meet your goals).  We offer additional services to select clients, which may include personalized investment recommendations, access to direct private investments; aggregated reporting & record keeping; tax planning; and cash flow management & budgeting. We do not custody or take possession of your assets, but we may recommend qualified custodians to you. We also serve as an investment manager and provide discretionary investment services to certain pooled investment vehicles (also referred to as private funds) that we sponsor, and in which clients may be invested. 

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Our firm offers both discretionary and non-discretionary services to retail clients, and discretionary investment management services to private funds that we sponsor. In a discretionary account, you grant us the authority to determine the investments to purchase or sell in the account. This discretion will remain in effect unless you revoke it. We will purchase and sell investments in your account consistent with the investment strategy selected by you as part of your overall investment plan (subject to any reasonable restrictions you provide us in writing). We typically monitor discretionary accounts on a weekly basis. Our minimum account size for discretionary accounts generally is $10,000,000. 

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In a non-discretionary account, we make recommendations to you regarding investments, but we do not have the authority to implement such recommendations.  Instead, you make the ultimate decision regarding the purchase or sale of investments in accordance with our recommendations. We do not limit the types of investments that we recommend for non-discretionary accounts, unless so instructed by you. We typically monitor non-discretionary accounts on a daily basis. Our minimum account size for non-discretionary accounts generally is $250,000,000. 

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Please also see our Form ADV Part 2A (“Brochure”), specifically “Advisory Business” & “Types of Clients”, for additional information on fees, services, and relationships. 

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Item 3: Fees, Costs, Conflicts, and Standard of Conduct

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Questions to ask us: Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me? How might your conflicts of interest affect me, and how will you address them?  

 

What fees will I pay? Our fees vary depending on the services you receive. Our fees for discretionary accounts are based on a percentage of the value of the managed assets in your account, with tiered decreases in the percentage when asset value exceeds such tier’s threshold. Our fees for non-discretionary accounts are generally a fixed annual percentage of the value of the overall assets that you have asked us to oversee and manage. Fees for ongoing services are generally billed quarterly in advance, for both discretionary and non-discretionary accounts. You pay our fees even if you do not have any transactions and the advisory fee paid to us generally does not vary based on the type of investments selected. If you are invested in a private fund we manage, and that private fund investment is held in an account on which we charge you an advisory fee, any management fee or performance-based compensation charged by that private fund will be waived until your client relationship is terminated. Please also see “Advisory Business”, “Fees and Compensation”, “Performance Based Fees and Side-by-Side Management”, “Types of Clients”, & “Methods of Analysis, Investment Strategies, and Risk of Loss” in our Brochure.  

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Some investments (e.g., mutual funds, variable annuities, etc.) impose additional fees (e.g., transactional fees and product-level fees) that reduce the value of your investment over time. The same goes for any additional fees you pay to a custodian. Additionally, you will pay transaction fees (such as brokerage commission), if applicable, when we buy or sell an investment for your account. You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying. Please also see our Brochure for additional details. 

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What are your legal obligations to me when acting as my investment adviser? How else does your firm make money and what conflicts of interest do you have? When we act as your investment adviser, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the investment advice we provide you. As an example, we receive performance-based compensation from some private funds that we sponsor or manage, which could give us an incentive to favor those private funds when we allocate investment opportunities or recommend investments. We manage potential conflicts of interest through internal review processes and oversight. Please also see “Performance Based Fees and Side-by-Side Management” and “Brokerage Practices” in our Brochure for additional details. 

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How do your financial professionals make money? Primarily, we and our financial professionals receive cash compensation from the advisory services we provide to you because of the advisory fees we receive from you. This compensation may vary based on different factors, such as those listed above in this Item. Please also see “Other Financial Industry Activities and Affiliations” in our Brochure for additional details. 

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Item 4: Disciplinary History

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Questions to ask us: As a financial professional, do you have any disciplinary history? For what type of conduct?
 

Do you or your financial professionals have legal or disciplinary history? Neither we nor our financial professionals have been subject to any disciplinary events by regulators, nor are we or our financial professionals party to any legal events that are material to client evaluation of our advisory business. Visit https://www.investor.gov for a free, simple search tool to research us and our financial professionals.  

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Item 5: Additional Information

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Questions to ask us: Who is my primary contact person? Is he or she a representative of an investment adviser or a broker-dealer? Who can I talk to if I have concerns about how this person is treating me? 

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For additional information on our advisory services, see our Brochure available at https://adviserinfo.sec.gov/firm/summary/332833 and any individual brochure supplement your representative provides. If you have any questions, need additional information, or want another copy of this Client Relationship Summary, then please contact us at 203-253-1823.

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Exhibit A – Material Changes to Client Relationship Summary  

 

We have begun sponsoring sector-focused private funds that invest in a range of underlying funds and other investments. Stone Temple Partners LLC’s Client Relationship Summary has been updated throughout to reflect these changes.  We have also updated the phone number for contacting us.