Advisory Business A. Goode and its Principal Owners
Goode Partners LLC (“Goode”) is a Delaware limited liability company with its principal place of
business located at 767 Third Avenue, New York, New York 10017. Goode was formed in 2006 by
David Oddi and Neal Goldman (original members). Jose Ferreira, Jr. was added as a member in 2008.
Daniel Bonoff and Keith Miller were added as members in 2018 after the resignation of Neal Goldman.
The membership interests of Goode are owned equally by Messrs. Oddi, Ferreira, Bonoff and Miller.
Messrs. Oddi, Ferreira, Miller and Bonoff are collectively referred to in this Brochure as the “Principals.”
Goode Fund I
Goode Investors I, LLC, a Delaware limited liability company, serves as the general partner of Goode
Fund I, a Delaware limited partnership with the private fund identification number 805-3609774890
(“Goode Fund I”).
Certain other persons serve as the managing members of the following entities:
Goode Rosa Co-Investors LLC1
Goode Bowling Co-Investors LLC2
1 Goode Rosa Co-Investors LLC is reported to the SEC as Goode Co-Investment Vehicle 4 with the private fund
identification number 805-4395149267.
2 Goode Bowling Co-Investors LLC is reported to the SEC as Goode Co-Investment Vehicle 6 with the private fund
identification number 805-6057828301.
Goode Fund II
Goode Investors II, LLC, a Delaware limited liability company, serves as the general partner of Goode
Fund II, a Delaware limited partnership with the private fund identification number 805-5642637024
(“Goode Fund II”).
Certain other persons serve as the managing members of the following entities:
Goode Villa Holdings LLC3
Goode Supreme Holdings Co-Invest LLC4
Goode Supreme Holdings Co-Invest II LLC5
Goode Incipio Technologies Holdings LLC6
Goode Incipio Holdco LLC7
Goode Silver Diner Co-Investors LLC8
3 Goode Villa Holdings LLC is reported to the SEC as Goode Co-Investment Vehicle 11 with the private fund
identification number 805-7584985166.
4 Goode Supreme Holdings Co-Invest LLC is reported to the SEC as Goode Co-Investment Vehicle 12 with the
private fund identification number 805-2936483636.
5 Goode Supreme Holdings Co-Invest II LLC is reported to the SEC as Goode Co-Investment Vehicle 13 with the
private fund identification number 805-4557393273.
6 Goode Incipio Technologies Holdings LLC is reported to the SEC as Goode Co-Investment Vehicle 15 with the
private fund identification number 805-9503293183.
7 Goode Incipio Holdco LLC is reported to the SEC as Goode Co-Investment Vehicle 16 with the private fund
identification number 805-5573567397.
8 Goode Silver Diner Co-Investors LLC is reported to the SEC as Goode Co-Investment Vehicle 17 with the private
fund identification number 805-7953063372.
Goode Fund III
Goode Investors III, LLC, a Delaware limited liability company, serves as the general partner of Goode
Fund III, a Delaware limited partnership with the private fund identification number 805-2847880666
(“Goode Fund III”).
Certain other persons serve as the managing members of the following entities:
Goode Forman Mills Holdings LLC9
Goode Heavyweight Co-Invest LLC10
Goode Stonefire Holdings LLC11
Goode Marolina Holdings LLC12
Each of the above referenced entities is referred to herein as a “Co-Investment Vehicle” and, collectively
as, the “Co-Investment Vehicles”). Goode Fund I, Goode Fund II, Goode Fund III and the Co-Investment
Vehicles are collectively referred to herein as “Goode Clients” unless otherwise described herein.
Goode Investors I LLC, as the general partner of Goode Fund I, Goode Investors II LLC, as the general
partner of Goode Fund II, Goode Investors III LLC, as the general partner of Goode Fund III and the
managing members of the Co-Investment Vehicles, are collectively referred to herein as the “General
Partner” unless otherwise described herein.
The General Partner has delegated to Goode its investment authority with respect to Goode Clients
pursuant to investment management agreements between Goode and Goode Clients. Investment
decisions made by Goode on behalf of Goode Clients are made collectively by the Principals.
The General Partner and its comprising entities are relying on Goode’s registration with the SEC under
the Advisers Act, and are not registering with the SEC themselves. The General Partner, as well as any
employees thereof, and any other persons acting on their behalf, are and shall be subject to the
supervision and control of Goode and intend to conduct their activities in accordance with the Advisers
Act and the rules thereunder. Unless otherwise provided, references to “Goode” in this Brochure will
include Goode and the General Partner, collectively.
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9 Goode Forman Mills Holdings LLC is reported to the SEC as Goode Co-Investment Vehicle 18 with the private
fund identification number 805-9021312083.
10 Goode Heavyweight Co-Invest LLC is reported to the SEC as Goode Co-Investment Vehicle 19 with the private
fund identification number 805-9025356080.
11 Goode Stonefire Holdings LLC is reported to the SEC as Goode Co-Investment Vehicle 20 with the private fund
identification number 805-8626414763.
12 Goode Marolina Holdings LLC is reported to the SEC as Goode Co-Investment Vehicle 21 with the
private fund identification number 805-9414753066.
B. Advisory Services
All descriptions of Goode Clients in this Brochure, including, but not limited to the investment strategies
employed on behalf of those entities, the fees and other costs associated with an investment in those
entities, and conflicts of interest faced by Goode in connection with the management of those entities, are
qualified in their entirety by reference to the relevant Fund Documentation.
Goode Fund I, Goode Fund II and Goode Fund III (as further described in the Private Offering
Memoranda of Goode Fund I, Goode Fund II, Goode Fund III and in Item 8 of this Brochure) are
primarily focused on making investments in high growth potential, consumer oriented companies
including established retailers, branded consumer products companies, direct marketers, restaurants, and
distribution sectors with sustainable competitive advantages. Investments by Goode Fund I, Goode Fund
II and Goode Fund III in these companies generally range from $10 to $30 million.
The Co-Investment Vehicles co-invest in each portfolio investment alongside Goode Fund I, Goode Fund
II or Goode Fund III, (on the same terms and conditions). The Members of the Co-Investment Vehicles
consist of Goode personnel or consultants, or entities formed for the benefit of those persons. The Co-
Investment vehicles for Goode Fund II and Goode Fund III also include investors in the investor funds
sponsored by Goode and other third parties. Certain personnel, consultants (or entities formed for the
benefit of those persons) are given the opportunity to invest alongside Goode Fund I, Goode Fund II
and/or Goode Fund III, at the beginning of each calendar year. If such persons elect at the beginning of
the calendar to co-invest with Goode Fund I, Goode Fund II and/or Goode Fund III, they must commit to
do so alongside Goode Fund I, Goode Fund II and/or Goode Fund III for the entirety of such calendar
year. If such persons choose or fail to meet such investment commitment, they are prohibited from co-
investing with Goode Fund I, Goode Fund II and/or Goode Fund III for the remainder of such calendar
year.
Goode provides discretionary investment advisory services to Goode Clients which, for purposes of this
Brochure, refers solely to Goode Fund I, Goode Fund II, Goode Fund III, and the Co-Investment
Vehicles.
C. Tailoring of Advisory Services
The investment decisions made by Goode on behalf of Goode Clients are subject to certain investment
objectives and guidelines, as set forth in the relevant Fund Documentation. These guidelines include the
amount of fund assets that may be invested in any single portfolio company, the amount of fund assets
that may be invested in companies over which Goode does not have control, and the geographies in which
fund assets may be invested, among others. Limited Partners of Goode Fund I, Goode Fund II, Goode
Fund III and Members of the Co-Investment Vehicles (together, “Investors”) generally may not opt in or
out of investments made on their behalf by Goode, except in limited circumstances where legal or
regulatory barriers prevent them from doing so.
In addition, Goode has, and may in the future, enter into agreements, such as side letter agreements, with
certain Investors that impose restrictions on investments to be made by Goode and provide for terms of
investment that are more favorable to the terms provided to other Investors. Some of these terms include
the waiver of management fees and/or carried interest, the provision of additional information or reports,
and more favorable transfer rights.
D. Wrap Fee Programs
Goode does not participate in “wrap fee” programs or services.
E. Assets Under Management
As of December 31, 2018, Goode managed approximately $724.7 million of client assets on a
discretionary basis.
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A. Compensation for Advisory Services
Goode receives asset-and performance-based fees and allocations from Goode Fund I, Goode Fund II and
Goode Fund III (as well as other compensation and reimbursements of expenses, as described further
below). The specific payment terms and other conditions of these fees and allocations are set forth below
and in the relevant Fund Documentation. Goode does not receive asset- or performance-based
compensation from, or allocate organizational or operating expenses to, the Co-Investment Vehicles.
However, the Co-Investment Vehicles do incur direct expenses.
Management Fees
The following is a summary of the method used to calculate the management fee paid to Goode by Goode
Fund I, Goode Fund II and Goode Fund III:
During the period commencing on the initial closing date of Goode Fund I or the effective date of Goode
Fund II and Goode Fund III and ending on the earlier of (i) the date six years from the final closing date
of Goode Fund I or the date five years from the effective date of Goode Fund II and Goode Fund III, and
(ii) a date selected by Goode in its discretion when at least 75% of the Limited Partner capital
commitments of Goode Fund I, Goode Fund II or Goode Fund III have been drawn for or otherwise
committed to investments, Goode Fund I, Goode Fund II and Goode Fund III pay to Goode a
management fee of 0.50% per quarter (equal to 2.0%
per annum)
of aggregate Limited Partner capital
commitments.
After the periods set forth in (1) above, Goode Fund I, Goode Fund II and Goode Fund III pay to Goode a
management fee equal to 2.0%
per annum of aggregate Limited Partner capital commitments, less the
amount of any distributions of capital returned to the Limited Partners of Goode Fund I, Goode Fund II
and Goode Fund III.
Corresponding to the first two-year term extension of Goode Fund I in 2017, Goode Investors I LLC,
General Partner, reduced the management fee to 1%
per annum of the lesser of each Goode Fund I
Limited Partner’s aggregate unreturned investment contribution or each Goode Fund I Limited Partner’s
proportionate share of the fair market value of all portfolio investments owned by Goode Fund I as of the
date the management fee is calculated. Corresponding to the second two-year extension of Goode Fund I
effective February 9, 2019, Goode Investors I LLC, reduced the management fee to 0%
per annum
regardless of the Goode Fund I Limited Partner’s aggregate unreturned investment contribution or the
Goode Fund I Limited Partner’s proportionate share of the fair market value of all portfolio investments
owned by Goode Fund I after that date.
Because management fees are based on capital commitments, Goode may be incentivized to oversize
Goode Fund I, Goode Fund II and Goode Fund III to increase the amount of its management fees. Goode
believes that, notwithstanding this potential conflict, it has sought and continues to seek capital
commitments in amounts that allow it to effectively deploy capital towards attractive investment
opportunities on behalf of Goode Clients.
Goode may also receive advisory fees, consulting fees, break-up fees, directors’ fees, monitoring fees,
and transaction fees at the time of investment from and with respect to the portfolio companies in which
Goode Clients invest. These fees are generally shared with Goode Fund I, Goode Fund II or Goode Fund
III and its Limited Partners through reductions or off-sets against management fees that would otherwise
be payable to Goode, as further described in the relevant Fund Documentation.
The management fees described above (as well as the carried interest distributions described below)
constitutes the compensation paid by Goode Clients. Goode does not otherwise maintain a fee schedule.
Carried Interest
The General Partner of Goode Fund I, the General Partner of Goode Fund II and the General Partner of
Goode Fund III are entitled to share in the profits (if any) generated on behalf of Goode Fund I, Goode
Fund II and Goode Fund III, respectively. Such compensation is in the form of carried interest
distributions made based on proceeds generated and distributed from the sale or other capital event of
portfolio investments made by Goode Fund I, Goode Fund II and Goode Fund III. The carried interest
distributions are in an amount equal to 20% of all such distributions made to Limited Partners of Goode
Fund I, Goode Fund II and Goode Fund III, after the return of invested capital, expenses, and a preferred
return of 8%
per annum paid to such Limited Partners of Goode Fund I and Goode Fund III. For Goode
Fund II, a preferred return of 10%
per annum is paid to those Limited Partners that participated in the first
closing and 8%
per annum to those that participated in the final closing. All performance-based
compensation payable to the General Partner will be effected consistent with the requirements of Section
205 of the Advisers Act and Rule 205-3 thereunder.
The General Partner does not receive carried interest distributions from the Co-Investment Vehicles
except for Goode Supreme Holdings Co-Invest II LLC.
Fee Waivers/Reductions
Certain Limited Partners of Goode Fund I, Goode Fund II and Goode Fund III have negotiated, and may
in the future negotiate, side letter agreements which may result in different management fees and carried
interest terms than those set forth in the Fund Documentation. Further, as noted above, Goode does not
receive asset-or performance-based compensation from (or allocate organizational or operating expenses
to) the Co-Investment Vehicles, which were established primarily for Goode consultants, employees, and
their family members and/or entities formed for the benefit of those persons to invest alongside Goode
Fund I, Goode Fund II and Goode Fund III.
Indemnification
Goode Fund I, Goode Fund II and Goode Fund III are obligated to indemnify Goode and its personnel
under circumstances set forth in the relevant Fund Documentation (subject to restrictions on the amount
for which each Limited Partner would be liable). The Co-Investment Vehicles have similar
indemnification obligations with respect to their Members, as set forth in the relevant Fund
Documentation.
Investors participating in subsequent closings
Limited Partners admitted to Goode Fund I, Goode Fund II and/or Goode Fund III at any closing after
their respective initial closings are required to contribute to Goode Fund I, Goode Fund II and/or Goode
Fund III an amount equal to the capital commitments that would have been drawn down had those
persons been admitted as Limited Partners at the initial closing of Goode Fund I, Goode Fund II and/or
Goode Fund III. This amount includes each Limited Partner’s proportionate share of management fees,
fund expenses, the original cost of portfolio investments, as well as interest on such amounts.
Valuation
The value of the investments made on behalf of Goode Clients is relevant to numerous aspects of those
entities, including carried interest paid by Goode Fund I, Goode Fund II and Goode Fund III. Goode
maintains valuation policies, which provide guidelines for valuing portfolio investments. Under its
valuation policies, at the end of each calendar quarter, Goode utilizes three valuation methods to produce
a fair market value estimate. Goode then reviews and determines a final fair market value for each
portfolio investment with consultation by the Goode Fund I, Goode Fund II and Goode Fund III’s
Advisory Boards.
B. Method of Fee Payments
Pursuant to the terms of the Fund Documentation, Goode Fund I, Goode Fund II and Goode Fund III pay
management fees on a quarterly basis in advance, on the first business day of each calendar quarter.
Goode sends capital calls to Limited Partners of Goode Fund I, Goode Fund II and Goode Fund III in the
amount of such management fees (net of any management fee offsets).
C. Other Fees/Expenses
Fund Expenses
Goode is responsible for all usual and customary overhead expenses incurred in managing Goode Fund I,
Goode Fund II and Goode Fund III and the Co-Investment Vehicles, including compensation for Goode
employees, the cost of office space, utilities, etc.
Goode Fund I, Goode Fund II and Goode Fund III bear their own organizational expenses (including out-
of-pocket expenses of Goode) up to an amount specified in the relevant Fund Documentation.
Organizational expenses in excess of that amount are borne by Goode.
Goode Fund I, Goode Fund II and Goode Fund III pay all expenses related to their operations, including:
fees, costs and expenses related to the purchase and sale of investments (net of expenses
reimbursed to Goode from portfolio companies);
fees and expenses of custodians, legal counsel, accountants, and consultants;
annual meetings;
any taxes, fees or other government charges;
insurance;
litigation costs; and
any costs and expense incurred in connection with unconsummated transactions (such as
“break-up fees”).
The Co-Investment Vehicles do not pay any organizational or operating expenses. They do, however, pay
for direct expenses which they incur.
Goode from time to time and may continue to do so in the future, allocate expenses incurred among
Goode Clients. If Goode allocates costs and expenses among Goode Clients, it does so in accordance
with its expense allocation procedures. Goode believes that its expense allocation procedures provide an
objective methodology for fairly and equitably allocating expenses among Goode Clients. Any questions
regarding the allocation of a particular expense which are not addressed in the expense allocation
procedures established by Goode are resolved by Goode’s Chief Compliance Officer.
Limited Partner Clawback
After the final liquidation of Goode Fund I, Goode Fund II and Goode Fund III, each Limited Partner may
be required to contribute a proportionate share of any liability or loss incurred by Goode Fund I, Goode
Fund II and Goode Fund III. However, the amount of this “limited partner clawback” is subject to certain
limitations, as set forth in the relevant Funds Documentation.
Reserves
Goode may, in its discretion, retain on behalf of Goode Clients any amount (which would otherwise be
distributed to such Goode Clients in accordance with the Fund Documentation) which it deems prudent as
reserves to meet future expenses or liabilities of Goode Fund I, Goode Fund II, Goode Fund III, and/or
the Co-Investment Vehicles.
D. Prepayment of Fees
Goode Fund I, Goode Fund II and Goode Fund III pay management fees to Goode on a quarterly basis in
advance (on the first business day of each calendar period). Prepaid management fees will not be
returned to Goode Fund I, Goode Fund II, Goode Fund III or their Limited Partners in the event of the
termination of the advisory relationship before the end of a quarterly period.
E. Compensation for the Sale of Securities
Neither Goode nor its supervised persons accepts compensation for the sale of securities or other
investment products.
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Generally
As described in Item 5 above, the General Partner receives performance-based compensation (“carried
interest”) from Goode Fund I, Goode Fund II and Goode Fund III. Carried interest distributions (if any)
will generally be an amount equal to 20% of the profits derived from the disposition of each portfolio
investment, after the return of invested capital, any fees and expenses paid by Limited Partners, and a
preferred return to Limited Partners.
Upon the final liquidation of Goode Fund I, Goode Fund II or Goode Fund III, the General Partner is
required to return to Goode Fund I, Goode Fund II or Goode Fund III, excess carried interest distributions
in the event that the General Partner has received more carried interest distributions than it otherwise
should have received in accordance with the Funds Documentation.
Conflicts
Performance-based compensation may incentivize Goode to dedicate increased resources and allocate
more profitable investment opportunities to Goode Fund I, Goode Fund II or Goode Fund III in instances
where one is well-performing in relation to the other - in order to increase the likelihood that Goode will
receive a carried interest distribution or a greater carried interest distribution. Goode believes that
because Goode Fund I, Goode Fund II or Goode Fund III have similar carried interest formulas and have
largely distinct investment periods, and that it has formal investment allocation procedures in place (as
described in Item 10 below), any such potential conflicts of interest are mitigated.
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As noted in Item 4 above, Goode provides discretionary investment advisory services to Goode Clients
(which may be organized as domestic partnerships, corporations, or other incorporated or unincorporated
entities). The Limited Partners of Goode Fund I, Goode Fund II and Goode Fund III are generally
institutions and high net worth individuals.
The limited partnership interests of Goode Fund I, Goode Fund II, Goode Fund III and the membership
interests of the Co-Investment Vehicles are not registered under the U.S. Securities Act of 1933.
Accordingly, interests in such entities are offered exclusively to investors satisfying the applicable
eligibility requirements either in private placement transactions within the United States or in offshore
transactions. Goode Fund I, Goode Fund II and Goode Fund III are excepted from the definition of an
“investment company” under Section 3(c)(1) and/or Section 3(c)(7) of the 1940 Act and the Co-
Investment Vehicles are exempt pursuant to Section 3(c)(1) of the 1940 Act.
Limited Partners in Goode Fund I, Goode Fund II and Goode Fund III are required to complete and
submit a subscription agreement binding them to the terms of the relevant Funds Documentation. The
minimum investment is generally $10 million for Goode Fund I, Goode Fund II and Goode Fund III.
However, such minimum investment amount may be modified on a case-by-case basis in accordance with
the relevant Fund Documentation.
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A. Investment Strategies, Instruments and Certain Related Risks
The following is a summary of (i) the strategies and methods of analysis that Goode uses in formulating
investment advice and managing assets on behalf of Goode Clients, and (ii) certain material risks
associated with the types of securities that Goode primarily recommends to Goode Clients.
The information included in this Brochure does not include every potential risk associated with each
investment strategy or security. Investors and prospective investors in Goode Clients are urged to ask
questions regarding risk factors applicable to a particular investment strategy or security, read all
product-specific risk disclosures (for example, the confidential private offering memorandum of Goode
Fund I, Goode Fund II and Goode Fund III) and determine whether a particular strategy or type of
security is suitable for his/her/its own account in light of his/her/its circumstances, investment objectives
and financial situation. Investing in securities involves risk of loss that investors should be prepared to
bear.
METHODS OF ANALYSIS AND INVESTMENT STRATEGIES
Goode, on behalf of Goode Clients, focuses on investing in small and mid-cap companies with high
growth potential. Investments in these companies generally range from $10 to $30 million per
transaction. Companies sought are in established retail, branded consumer products, direct marketing,
restaurant and consumer distribution with sustainable competitive advantages. Investments are sought
that leverage the collective experience of the Principals and the Goode investment team to add value in
areas such as strategy development, management team building, sales growth (whether through product
extensions, international expansion or new unit growth), and other operational improvements. Goode
regularly reassesses and refines its acquisition criteria to reflect the lessons learned from its prior
investment and management experience.
Goode’s investment professionals spend a significant portion of their time originating investment
opportunities. During its history, Goode has built a comprehensive database of more than 3,735 contacts
at commercial and investment banks, M&A boutiques and, business intermediaries that serve as sources
of acquisition opportunities. Goode segments and regularly updates its contact database in order to focus
its efforts on its most productive relationships. Goode also identifies potential investments through: (i)
third party finders, which Goode retains to contact selected companies in targeted industries using their
proprietary databases; (ii) managers of its portfolio companies; (iii) relationships with industry
executives; (iv) direct solicitation of business owners; and (v) personal relationships with prospective
sellers.
If Goode concludes that a business is worth pursuing, its deal team will proceed with its due diligence.
This process typically includes initial and follow-up management meetings, facility visits, review of
financial and operating data, and a preliminary market assessment, which generally involves the retention
of, and discussion with, third-party industry experts. As part of this phase, Goode will also refine its
acquisition model. Importantly, if the acquisition team believes that additional investments in people,
programs or systems are necessary, Goode will build those considerations into its financial model.
Once a letter of intent to acquire the target company is signed, the Goode deal team will: (i) make
repeated visits to the company to perform detailed business diligence and extensively interact with senior
management, both in groups and individually; (ii) have meetings and calls with industry consultants and
experts to assess market dynamics and how they may impact the company; (iii) conduct calls with
customers and vendors; and (iv) structure shareholder, employment and long-term incentive
compensation agreements with key management.
As part of its assessment process for each platform acquisition, Goode performs an analysis of industry
size, competition and market fragmentation. This not only helps clarify the relative position of the
business Goode is diligencing, but also provides insight into the number and size of potentially attractive
add-on acquisition candidates. Goode Clients have in the past, and may in the future, acquire add-on
investments, in order to provide product line extensions, open new market opportunities, extend the
portfolio company’s geographic reach or do all of the foregoing.
After investing in a portfolio company, the Principals and the investment team will provide direct
assistance to that portfolio company on matters such as major sales proposals to existing or target
customers, reorganization, compensation programs, development of key metrics to monitor the business,
intellectual property development, protection and licensing, global vendor initiatives, capital purchasing
planning, tax planning, legal and financial matters. As appropriate, Goode will meet with customers and
distributors and participate in contract negotiations.
During its investment period, Goode personnel, in consultation with management, determine the timing
and method of Goode’s exit. Goode actively works with the managers of its clients’ portfolio companies
to prepare and motivate them for the sale of the companies.
CERTAIN RELATED RISKS
The investment strategy followed by Goode, the structure of the relationships between Goode, the
General Partner, the Principals and Goode Clients, and the inherent risks of investing generally, create
certain risks for Goode Clients, including but not limited to the following.
No Assurance of Investment Return
The task of identifying and negotiating private investment opportunities, managing such investments, and
realizing a significant return for investors is difficult. Many entities similar to Goode have been unable to
make, manage, and realize profits on such investments successfully. There is no assurance that Goode
will be able to invest the capital of Goode Clients on attractive terms or generate returns on such capital.
Goode has no source of funds from which to pay distributions to Goode Clients, other than income and
gain (if any) received on the investments made on behalf of Goode Clients.
Dependence on Key Personnel
The success of Goode Clients is highly dependent on the financial and managerial expertise of Goode and
its Principals. Investors have no control with respect to the day-to-day operations of Goode and must rely
on the Principals’ ability to identify and consummate suitable investments, properly guide and manage the
portfolio companies in which Goode Clients invest, and determine the appropriate time and terms upon
which to exit such investments. The loss of one or more of these individuals could have a material
adverse effect on the investment performance experienced by Goode Clients. The Principals are under no
contractual obligation to remain with Goode for any period of time.
Nature of Investments by Goode Clients
Goode concentrates investments in securities and assets that have significant risks as a result of business,
financial, market, or legal uncertainties. Moreover, investments made by Goode are concentrated within
limited industry sectors. There can be no assurance that Goode will correctly evaluate the nature and
magnitude of the various factors that could affect the value of the investments made on behalf of Goode
Clients. A variety of factors that are inherently difficult to predict, such as domestic or international
economic and political developments, may significantly affect the results experienced by Goode Clients
and the value of their investments. In addition, Goode may not seek or obtain controlling positions in
portfolio companies, which may decrease Goode’s ability to generate a profit with regard to that portfolio
company.
Leveraged Nature of Investments
Certain portfolio companies may employ leverage, a significant portion of which may be subject to
floating interest rates. The leveraged capital structure of such portfolio companies may increase the
exposure of Goode Clients to any deterioration in the portfolio company’s condition or industry,
competitive pressures, adverse economic developments, and rising interest rates. If a portfolio company
is unable to generate sufficient cash flow to meet principal and interest payments on its indebtedness,
Goode Clients may suffer a partial or total loss of capital invested in the portfolio company, which,
depending on the size of the investment, could materially adversely affect the overall returns to Goode
Clients.
Portfolio Company Projections
Goode establishes the capital structure of portfolio companies based on financial projections. These
projections are based upon certain assumptions and upon information provided by and judgments made
by management of the relevant portfolio company. These projections are only estimates of future results
and, therefore, there can be no assurance that the projected results will be achieved. Actual results may
vary significantly from the projections, and general economic conditions and other factors out of the
control of Goode may negatively impact the reliability of the financial projections, and thus the returns
experienced by Goode Clients.
Minority Investments
Some investments will likely represent minority interests in portfolio companies and Goode Clients may
hold only minority voting positions on the boards of directors of certain portfolio companies. While
Goode will make every effort to structure minority investments to maximize the ability of Goode Clients
to influence the management and direction of the portfolio company, in the case of minority investments,
Goode Clients may not be able to control or exercise substantial influence over such portfolio company.
Third-Party Involvement in Investments
Investments involving multiple co-investors may pose additional risks and may be more difficult to
finance and exit. For example, Goode Clients may co-invest with third parties through joint ventures or
other entities, including with private equity funds sponsored by others in so-called "club deals." A co-
investment commitment to a portfolio company may be substantial. Such investments may involve risks
not present in investments where third parties are not involved, including the possibility that a co-investor
may experience financial, legal or regulatory difficulties, may at any time have economic or business
interests or goals which are inconsistent with those of Goode Clients, may take a different view from
Goode Clients as to the appropriate strategy for an investment, or may be in a position to take action
contrary to Goode Client’s investment objectives. Moreover, as a result of co-investment arrangements,
Goode Clients may be liable for the actions of third-party co-investors under certain circumstances.
The General Partner will have discretion to offer co-investment opportunities to any person. Co-
investment opportunities will not be offered to all Investors or on a pro rata basis.
Reliance on Management of Portfolio Companies
While it is the intent of Goode Clients to invest in portfolio companies with proven operating
management in place, there can be no assurance that such management will continue to operate
successfully. Although Goode will monitor the performance of each investment, Goode relies
significantly upon portfolio company management to operate the portfolio companies on a day-to-day
basis.
Impact of Economic Conditions
Global economic conditions since 2008 have posed challenges for the financial industry, including the
private equity fund market. As a result of market conditions, the level of attractive investment
opportunities for Goode Clients may decline. It is possible that Goode Clients may take a longer than
anticipated time to invest capital, and as a result, for some period of time, Goode Clients may be
relatively concentrated in a limited number of investments. Further, Goode Clients may experience
increased difficulty exiting an investment if a need for liquidity arises. Certain investments may be
liquidated at a lower price than Goode believes reflects the asset’s true value. General economic and
other market conditions, including interest rates, rate of inflation, the availability of financing, the price of
securities and participation by other investors in the financial markets, may affect Goode Client’s
activities, including the value and number of investments made by Goode Clients. Moreover, the
performance of the portfolio companies could be adversely affected by changes in the general economic
climate or the economic factors affecting a particular industry, changes in tax law or specific
developments within such companies or interest rate movements. Goode Clients will generally invest in
equity securities, which will be among the more junior securities of its portfolio company's capital
structure, and, thus, may be subject to greater risk of loss.
Portfolio Concentration
Goode Clients intend to concentrate its investments in companies within the retail, branded consumer
products, direct marketing, restaurant and consumer distribution sectors. Adverse economic conditions
within these sectors could therefore disproportionately affect Goode Client portfolio compared with other
investment portfolios. Because Goode will only make a limited number of portfolio investments on behalf
of Goode Clients, the poor performance by even one investment could severely affect the total returns to
Goode Clients.
Difficulty of Identifying Suitable Investments
There can be no assurance that there will be a sufficient number of suitable investment opportunities to
enable Goode Clients to invest all of their committed capital in opportunities that satisfy Goode’s
investment objectives, or that such investment opportunities will lead to completed investments by Goode
Clients. The process of identifying, completing and realizing an attractive investment opportunity is
highly competitive and involves a high degree of uncertainty, especially with regard to timing. Goode
Clients compete for the acquisition of investments with many other investors, some of which will have
greater resources. In addition, the availability of investment opportunities is subject to market conditions
as well as, in some cases, the prevailing regulatory or political climate.
Illiquidity of Investments
Investments by Goode Clients require a long-term commitment with no certainty of return. It is unlikely
there will be significant near-term cash flow available to Investors. Many of the investments will be
highly illiquid, and there can be no assurance that Goode Clients will be able to realize such investments
at attractive prices or otherwise be able to effect a successful realization or exit strategy. Consequently,
dispositions of such investments may require a lengthy time period or may result in distributions in-kind
to Investors. Additionally, Goode Clients may acquire securities that cannot be sold except pursuant to a
registration statement filed under U.S. securities laws. There can be no assurance that private purchasers
can be found for the investments made on behalf of Goode Clients. Finally, in some cases, Goode Clients
may be prohibited by contract from selling securities for a period of time.
Risks Associated with Foreign Investments
Although Goode intends to invest primarily in domestic companies, Goode Clients may from time to time
invest in non-U.S. companies. Investing outside the United States may involve substantially greater risks
than investing in the United States. In particular, the value of investments in non-U.S. companies may be
significantly affected by changes in currency exchange rates. Although Goode may attempt to hedge
against foreign currency exchange rate risks related to a portfolio investment, there can be no assurance
that Goode will be able to do so successfully or cost effectively, and Goode may decide not to hedge
against such risks or to do so only incompletely. Additional risks of investing outside the United States
may include (i) economic dislocations in the host country; (ii) less publicly available information; (iii)
less developed standards and regulatory institutions; and (iv) greater difficulty of enforcing legal rights in
a non-U.S. jurisdiction. Additionally, in some non-U.S. countries, there is the possibility of expropriation
of value (including through confiscatory taxation, limitations on the repatriation or sale of securities,
property or other assets of Goode Clients), political or social instability and diplomatic developments,
each of which could have an adverse effect on investments made in those countries on behalf of Goode
Clients. While Goode will take these factors into consideration in making investment decisions for
Goode Clients, these risks are inherently difficult to quantify and no assurance can be given that Goode
will be able to evaluate these risks successfully.
Expedited Transactions
Investment analyses and decisions by Goode are often undertaken on an expedited basis in order for
Goode Clients to take advantage of available investment opportunities. In such cases, the information
available to Goode at the time of an investment decision may be limited, and Goode may not have access
to the detailed information necessary for a full evaluation of investment opportunities.
Provision of Managerial Assistance
Goode may obtain rights to participate in and to influence the conduct of the management of portfolio
companies. Goode may designate directors to serve on the boards of directors of portfolio companies, and
the designation of directors and exercise of other management rights could expose the assets of Goode
Clients to claims by a company, its security holders, or its creditors. The exercise of control over a
company imposes additional risks of liability for environmental damage, product defects, failure to
supervise management, violation of governmental regulations, and other types of liability. If these
liabilities were to occur, Goode Clients could suffer significant losses on their investments. While Goode
manages investments by Goode Clients in a way that attempts to minimize exposure to these risks, the
possibility of successful claims cannot be precluded.
Risks Upon Disposition of Portfolio Investments
In connection with the disposition of a portfolio investment, Goode may be required to make
representations about the business and financial affairs of the portfolio company typical of those made in
connection with the sale of any business, or may be responsible for the contents of disclosure documents
under applicable securities laws. Although Goode intends to structure transactions so that it does not
have to do so, Goode Clients may also be required to indemnify the purchasers of such investment or
underwriters to the extent that any such representations or disclosure documents turn out to be incorrect,
inaccurate or misleading. These arrangements may result in contingent liabilities, which might ultimately
have to be funded by the Investors. The Fund Documentation provides that if there is any such claim in
respect of a portfolio company, it will be funded by the Investors to the extent that they have received
distributions.
Bankruptcy of Portfolio Companies
Goode may make investments in portfolio companies that may experience financial difficulties and
become insolvent or file for bankruptcy protection. Various U.S. federal and state laws in connection
with such bankruptcy proceedings could operate to the detriment of Goode Clients. There is also a risk
that a court may subordinate investments made by Goode Clients to other creditors or require Goode
Clients to return amounts previously paid to them by a portfolio company that became insolvent or files
for bankruptcy, a risk that could increase if Goode has management rights in such portfolio company.
Risks Relating to Carried Interest
The fact that the General Partner is entitled to distributions based on the performance of Goode Clients
may create an incentive for Goode to cause Goode Clients to make investments that are more speculative
than would be the case in the absence of performance-based distribution.
Need for Follow-On Investments
Goode may be called upon to provide follow-on funding for the portfolio companies or increase its
investment in such companies. There can be no assurance that Goode Clients will wish to make follow-
on investments or that Goode Clients will have sufficient funds to do so. Any decision by Goode to not
make follow-on investments or the inability to make such investments may diminish the ability of Goode
Clients to influence the future development of such companies or may have a substantial negative impact
on a company thereby decreasing its value.
Limited Operating History; Relation to Other Investment Results
Although the key personnel of Goode have extensive experience investing in the private equity market,
Goode and the General Partner are recently formed entities with limited operating histories upon which to
evaluate likely investment performance. Prior investment results attained by the Principals or any other
person described herein are not indicative of future investment results to be expected by Goode Clients.
The nature of, and risks associated with, future investments may differ substantially from those
investments and strategies undertaken historically by the Principals or any other person described herein.
Illiquidity of Interests
The interests in Goode Clients have been issued in reliance upon certain exemptions from registration or
qualification under applicable U.S. Federal and state securities laws and, accordingly, are subject to
certain restrictions on transferability. There is no public market for such interests, and none is expected to
develop. In addition, Investors are not entitled to withdraw their capital contributions and interests may
not be assigned or transferred without the written consent of Goode. Redemptions are also not permitted
except in limited circumstances as described in the Fund Documentation.
Investment Company Act, Securities Exchange Act, Investment Advisers Act
The entities that comprise the Goode Clients are not registered under the U.S. Investment Company Act
of 1940, as amended (the “Investment Company Act”). The Investment Company Act provides certain
protection to investors and imposes certain restrictions on registered investment companies (including, for
example, limitations on the ability of registered investment companies to incur leverage), none of which
will be applicable to Goode Clients. Neither Goode nor the General Partner is registered as a broker-
dealer under the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), or with the
Financial Industry Regulatory Authority (“FINRA”), and is consequently not subject to the record-
keeping and specific business practice provisions of the Exchange Act and the rules of FINRA.
Registration with the SEC as an investment adviser does not mean that the SEC has approved any
investment nor does it eliminate the risks associated with private investment funds managed by Goode.
Proposed Tax Legislation Adversely Affecting Goode’s Employees and Other Service Providers
Congress has recently considered proposed legislation that would treat income from carried interest as
ordinary income for U.S. federal income tax purposes. Enactment of any such legislation could adversely
affect employees or other individuals performing services for Goode Clients who hold direct or indirect
interests in the General Partner and benefit from carried interest, which could make it more difficult for
Goode and its affiliates to incentivize, attract, and retain individuals to perform services for Goode
Clients. Any such developments could thus adversely affect investment returns allocable to Goode
Clients. It is unclear whether any such proposed legislation, if enacted, would apply to Goode, the
General Partner, and any other individuals involved with Goode Clients who benefit from carried interest.
Defaults by Investors
The consequences of defaulting on a capital call are material and adverse to the defaulting Investor. If an
Investor fails to contribute any portion of its Commitment upon a call by Goode, such Investor may be
subject to a number of remedies available to Goode, including a reduction in amounts otherwise
distributable to such Investor by 50% and withholding the remaining 50%, loss of the right to receive
distributions and to vote, and the incurrence of liability for all costs, expenses and/or damages resulting
from its failure to contribute such capital. The defaulting Investor could lose its entire investment and
remain liable for amounts due in respect of its Commitment (including payments of Management Fees),
as well as for interest on such amounts at the maximum rate permitted by law.
Conflicts of Interest
Investors should be aware that there will be situations where Goode, the General Partner, and their
respective affiliates may encounter potential conflicts of interest in connection with investments made on
behalf of Goode Clients. Goode has established policies, procedures, and controls to mitigate such actual
and potential conflicts of interest, but there can be no assurance that such policies, procedures, and
controls will be effective. By acquiring an interest in Goode Clients, each Investor will be deemed to
have acknowledged the existence of such actual and potential conflicts of interest, and to have waived any
claim with respect to any liability arising from the existence thereof.
Diverse Membership
Goode Clients are expected to include U.S. taxable and tax-exempt entities and institutions from
jurisdictions outside of the United States. Such Limited Partners may have conflicting investment, tax
and other interests with respect to their investments. The conflicting interests of various Investors may
relate to or arise from, among other things, the nature of portfolio investments, the structuring of the
acquisition of portfolio investments and the timing of the disposition of portfolio investments. As a
consequence, conflicts of interest may arise in connection with decisions made by Goode, including with
respect to the nature or structuring of portfolio investments, that may be more beneficial for one Investor
than for another, especially with respect to the tax situations of particular Investors. In selecting and
structuring portfolio investments, Goode will consider the investment and tax objectives of Goode Clients
as a whole, not the investment, tax, or other objectives of any Investor individually.
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There are no legal or disciplinary events that are material to a client’s or prospective client’s evaluation of
Goode, the General Partner, or the Principals, and the investment advisory business conducted by any of
them.
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Affiliated Investment Advisers
Goode does not provide investment advisory services through any affiliated entities.
Pooled Investment Vehicles
As described in Item 4 above, Goode currently provides investment advisory services to Goode Fund I,
Goode Fund II, Goode Fund III and the Co-Investment Vehicles, and may in the future provide
investment advisory services to additional pooled investment vehicles.
Potential Conflicts of Interest
Goode Clients have overlapping investment objectives, which may produce conflicts of interest
Certain inherent conflicts arise from the fact that Goode provides investment advisory services to more
than one client, and its clients have (and may in the future have) overlapping investment objectives and
strategies, which could affect the prices and availability of investment opportunities. However, both
Goode Fund I, and its Co-Investment Vehicles; Goode Fund II and its Co-Investment Vehicles and Goode
Fund III and its Co-Investment Vehicles invest alongside each other in each portfolio investment on the
same terms and conditions and for Goode personnel and consultants participation is based on a pre-
determined percentage. In the rare instance that an investment opportunity may otherwise be appropriate
for more than one Goode Client, participation in that investment opportunity will be allocated pursuant to
Goode’s allocation policy (as described below in this Item 10). In addition, the Fund Documentation
contains restrictions on Goode’s organization of additional investment funds having similar investment
objectives to those of Goode Fund I, Goode Fund II and Goode Fund III.
Goode and its personnel may engage in investment activities which could conflict with the interests of
Goode Clients
Goode and its personnel may invest, on behalf of themselves, in securities and other instruments that
would be appropriate for, are held by, or may fall within the investment guidelines of a Goode Client.
Goode and its personnel may give advice or take action for their own accounts that may differ from,
conflict with, or be adverse to, advice given to or action taken for Goode Clients. These activities may
adversely affect the prices and availability of other securities or instruments held by or potentially
considered for, one or more of Goode’s Clients. Neither a Goode Client nor an Investor in any Goode
Client will have an interest in such investments or other investment funds organized or sponsored by
Goode by virtue of its status as a client or investor (notwithstanding the fact that those investments may
be in competition with those of Goode Clients).
Goode has provided (and will in the future provide) equity co-investment and debt financing opportunities
in respect of portfolio investments to the investors in investment funds sponsored by Goode and to other
third parties. While Goode and its related persons do not receive any arrangement or management fees
for providing these opportunities, Goode and/or its related persons could derive other benefits from these
activities.
The Fund Documentation contains restrictions on the principal business activities of Goode and formation
of successor funds by Goode, although Goode personnel are permitted to make passive personal
investments in other investment funds having similar investment objectives as those of a Goode Client.
Goode personnel may have conflicts in allocating their time and services
Goode personnel may have certain conflicts in allocating their time and services among Goode Clients.
Goode personnel will work on multiple endeavors and potential business activities (as well as any
personal activities, within the parameters of any employment agreement between Goode and such
persons). For example, as discussed above in Item 6, Goode personnel may be incentivized to devote
more time and attention to a Goode Client that appears to have the potential to generate the greatest fees
and carried interest distributions.
As described above, the Fund Documentation contains restrictions on the principal business activities of
Goode and the formation of other investment funds by Goode, although Goode personnel are permitted to
make passive personal investments in other investment funds having similar investment objectives as
Goode Clients.
The duties of Goode personnel serving on the board of a portfolio company may conflict with Goode’s
duties to Goode Clients
Conflicts of interest may arise because Goode personnel serve as directors of the portfolio companies in
which Good Clients invest. In addition to any fiduciary duties that Goode and its personnel owe to Goode
Clients, as directors of a portfolio company, those Goode personnel owe fiduciary duties to the portfolio
company (and may owe duties to their shareholders). Those positions may place Goode personnel in a
position where they must make a decision that is either not in the best interests of Goode Clients or not in
the best interests of the portfolio company. However, as Goode Clients will generally be the controlling
shareholders of such companies, it is expected that such interests will generally be aligned.
The interests of Goode Clients may conflict if those entities invest in securities of the same issuer having
different levels of seniority
While not currently anticipated, under certain circumstances, Goode Clients may invest in securities or
other instruments of the same issuer (or affiliated group of issuers) having a different seniority in the
issuer’s capital structure. If the issuer becomes insolvent, restructures, or suffers financial distress, there
may be a conflict between the interests of those Goode Clients insofar as the issuer may be unable (or in
the case of a restructuring prior to bankruptcy may be unable) to satisfy the claims of all classes of its
creditors and security holders. Under these circumstances, it may not be feasible for Goode to reconcile
the conflicting interests of those Goode Clients in a way that protects the interests of those Goode Clients.
Investment Persons’ ownership interest in certain clients may incentivize those persons to favor those
clients (and therefore themselves) over other clients
Investment personnel of Goode that have ownership interests in certain Goode Clients may have an
incentive to favor those clients (and therefore themselves) over other clients. For example, the investors
in the Co-Investment Vehicles are generally Goode personnel, consultants, their family members, and/or
entities formed for the benefit of those persons.
Goode has in place various policies and procedures to ensure that Goode Clients are treated fairly and that
Goode acts in the best interests of it clients (for example, see Goode’s allocation procedures, as described
below).
Allocation Policy
With the exception of Goode Fund I, Goode Fund II, Goode Fund III and Goode Fund I, Goode Fund II
and Good Fund III’s corresponding Co-Investment Vehicles (which invest in portfolio companies on the
same terms and conditions and based on a pre-determined investment amount), Goode Clients generally
do not have overlapping primary investment periods. However, Goode has allocation policies and
procedures in place to be utilized in those rare instances where it is allocating investments among multiple
Goode Clients. Its policies are designed to promote the fair and equitable allocation and execution of
investment opportunities among its client accounts over time and are designed to comply with the
securities laws and other applicable regulations. Goode believes that these practices are designed to
reasonably ensure that its client accounts are treated in a fair and equitable manner over time.
Letters of Understanding a/k/a “Side Letters”
By entering into side letter Agreements, certain Limited Partners in Goode Fund I, Goode Fund II and
Goode Fund III may receive information or other advantages that are not generally available to, or
utilized by, other Limited Partners in Goode Fund I, Goode Fund II and Goode Fund III (whether with
respect to Goode Fund I, Goode Fund II, Goode Fund III, the financial markets in general, or otherwise)
and, as a result, may be able to act on such information when others cannot.
Advisory Board
Goode Fund I, Goode Fund II and Goode Fund III have advisory boards (each, an “Advisory Board”),
whose members are designated by the General Partner. The Advisory Board generally reviews potential
conflicts of interest, consults with Goode and the General Partner concerning the valuation of portfolio
company investments, and consults with the General Partner as to the progress of Goode Fund I, Goode
Fund II and Goode Fund III in achieving its investment objectives.
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Goode Code of Ethics The Goode Code of Ethics provides a standard of conduct for, among other things, the personal trading of
Goode employees. Under the Code of Ethics, certain Goode personnel must provide Goode with initial
and annual holdings reports (excluding accounts holding certain securities or discretionary accounts) and
quarterly transactions reports. Goode personnel are also generally prohibited from executing transactions
in issuers included on Goode’s Personal Securities Trading Restricted List, and must obtain preapproval
from Goode’s Chief Compliance Officer prior to investing in any private placement or participating in
any initial public offering. Goode will review violations of its Code of Ethics to determine appropriate
internal sanctions – including, but not limited to, dismissal or other appropriate actions.
Goode Clients and prospective Goode clients may obtain a complete copy of Goode’s Code of Ethics free
of charge by submitting a written request to Goode’s Chief Compliance Officer at 767 Third Avenue, 22nd
Floor, New York, NY 10017.
General Conflicts
Goode personnel may have multiple advisory, transactional, financial and other interests in securities,
instruments, companies or investment vehicles that may be purchased or sold for Goode Clients (see Item
10 above). Goode has established procedures and disclosure requirements designed to address conflicts
of interest arising between Goode and its clients.
Affiliated Investments, Cross Trades and Principal Trades Goode Clients may engage in principal transactions
In accordance with the anti-fraud provisions of the Advisers Act and Goode’s own policies and
procedures, neither Goode nor its related persons will, as a principal, sell a security to, or buy a security
from, any Goode Client, without providing appropriate disclosure to and obtaining the consent of such
Goode Client prior to the settlement of that transaction.
Goode personnel have financial interests in Goode Client transactions
As described in Item 4 above, Goode and its related persons may receive advisory and consulting fees and
other compensation for services provided to portfolio companies in which Goode Clients invest. Goode
and its affiliates may also receive fees and other compensation with respect to such portfolio companies
(including fees based on consummated or unconsummated transactions). As described in Item 5 above,
those fees are generally shared with the Limited Partners in Good Fund I, Goode Fund II and Goode Fund
III through reductions or off-sets against management fees that would otherwise be payable by Goode
Fund I, Goode Fund II and Goode Fund III, as further described in the Fund Documentation.
Goode personnel currently serve, and may in the future serve, on the boards of directors of the portfolio
companies in which Goode Clients invest. (See Item 10 for a description of this potential conflict). In
addition, Goode Clients’ portfolio companies and/or service providers to Goode Clients may, from time
to time, make discounts and other benefits available to Goode personnel in connection with products or
services offered by those companies.
Goode Purchases/Sales of Securities Recommended to Goode Clients
As noted above in Item 4 and Item 10, Goode sponsors and manages the Co-Investment Vehicles, which
are entities that invest in portfolio companies alongside Goode Fund I and Goode Fund II.
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Selection of Broker-Dealers The investment advisory services provided by Goode to Goode Clients focuses on the investment in
private portfolio companies. Other than for short-term cash management purposes or on the rare occasion
that Goode Clients become the owners of publically traded securities, Goode seldom engages brokers to
execute securities transactions on behalf of Goode Clients. Goode does, however, have the authority to
determine, without client consultation or consent, the broker-dealer or other counterparty through which
securities or other instruments are bought and sold, and the compensation at which transactions are
effected.
In the limited circumstances in which Goode does in fact engage a broker in connection with securities
transactions, Goode’s policy is to seek the best execution of orders on an overall basis, which means that
it seeks to ensure that the client’s total cost or proceeds is the most favorable under the circumstances.
Accordingly, transactions will not always be executed at the best price or the lowest available
compensation. Goode does not have any obligation to use execution-only brokers in effectuating
transactions on behalf of Goode Clients.
Goode does not adhere to any rigid formulas in making its selection of broker-dealers to effectuate
securities transactions on behalf of its clients, but weighs a combination of factors or criteria, including:
reliability;
reputation;
experience in the industry;
financial stability;
efficiency;
confidentiality of trading activity;
idea generation;
competitive compensation; and
general responsiveness.
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A. Review-Risk Management
During the early years of a portfolio investment, Goode personnel typically hold operations review
meetings with portfolio company management at least one day per month at the company’s headquarters.
These meetings involve discussions regarding, among other topics, the company’s financial results and
position, key initiatives, future priorities, and evaluation of progress against established objectives. In
addition to these operations review meetings, Goode personnel interact with portfolio company managers
at least weekly, receive weekly flash reports on the performance of the business, and provide direct
assistance to portfolio companies on matters such a major sales and/or proposals to existing or target
customers.
Typically, when making an investment in a portfolio company, at least one member of the General
Partner is named to the board of directors.
B. Reports to Clients
Investors in Goode Fund I, Goode Fund II and/or Goode Fund III receive:
quarterly reports providing narrative and summary financial information regarding Goode
Fund I, Goode Fund II and/or Goode Fund III and its investment portfolio;
quarterly unaudited financial reports of Goode Fund I, Goode Fund II and/or Goode Fund III;
audited annual financial reports of Goode Fund I, Goode Fund II and/or Goode Fund III
within 90 days of the conclusion of its fiscal year (audited by the independent public
accountant of Goode Fund I, Goode Fund II and/or Goode Fund III).
Certain Investors in Goode Fund I, Goode Fund II and/or Goode Fund III may receive additional reports,
in written and/or oral format, based on the terms of the side letter agreements entered into between Goode
and such Investors. Investors in the Co-Investment Vehicles receive periodic reports with respect to their
specific investments.
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Goode has and may in the future enter into arrangements with third parties (including affiliated third
parties) whereby such third parties receive fees for referring investors to Goode. Any such compensation
is only paid if the investor is aware of the fee arrangement (through disclosures or acknowledgments
included in the Fund Documentation) and the arrangement otherwise complies with applicable rules and
regulations. Any such compensation will be paid directly by Goode.
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To the extent required by applicable law, the securities and funds held on behalf of Goode Clients are
held by qualified custodians. As noted in Item 13 above, Investors in Goode Fund I, Goode Fund II
and/or Goode Fund III receive annual financial statements audited by an independent public accounting
firm for the Goode entities in which they have invested. Investors are urged to carefully review such
statements.
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Goode exercises discretion in managing each Goode Client, based on the relevant investment objectives
of such Goode Client, policies and strategies disclosed in the relevant Fund Documentation, and the terms
of any side letter agreements between Goode and the Limited Partners of Goode Fund I, Goode Fund II
and/or Goode Fund III. Such investment authority is pursuant to investment management agreements
between Goode and Goode Clients.
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Summary of Proxy Voting Policies and Procedures Generally, Goode does not acquire investments that require it to vote proxies on behalf of Goode Clients.
However, pursuant to Rule 206(4)-6 under the Advisers Act, Goode is providing this summary of its
proxy voting process if it were to vote proxies on behalf of Goode Clients, as well as information as to
how investors in Goode Clients may obtain Goode’s complete proxy voting policy and procedures and
information as to how proxies were voted for securities held by Goode Clients if Goode were to vote such
proxies.
To the extent proxy voting is part of a particular investment strategy, Goode has adopted proxy voting
policies and procedures designed to ensure that where its clients have delegated proxy voting authority to
Goode, all proxies are voted in the best interest of its clients without regard to the interests of Goode or
related parties. Clients may not direct Goode’s vote in a particular solicitation. Goode’s proxy voting
policies provide that proxies related to client assets managed by Goode may be voted through a third
party proxy service.
Investors in Goode Clients may obtain a complete copy of Goode’s Proxy Voting Policy and Procedures
or information on how Goode voted proxies for the relevant Goode Client free of charge by submitting a
written request to Goode’s Chief Compliance Officer at 767 Third Avenue, 22nd Floor, New York, NY
10017 or by phone at 646-722-9450.
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Form ADV Part 2 requires an investment adviser (such as Goode) to disclose any financial condition
reasonably likely to impair its ability to meet contractual commitments to clients. At this time, Goode has
no information to report that is applicable to this Item 18.
Item 19 – Requirements for State-Registered Advisers Form ADV Part 2 requires responses to Item 19 if an investment adviser is registered with one or more
state securities authorities. This item is not applicable to Goode.
Privacy Statement The following privacy statement applies to Goode Partners, LLC and our affiliates (“we”) for current
and former natural
person Limited Partners in our funds (“you”).
Our Commitment to Your Privacy: we are sensitive to your privacy concerns. We have a policy of
protecting the confidentiality and security of information we collect about you. We are providing you this
notice to help you better understand why and how we collect certain personal information, the care with
which we treat that information, and how we use that information.
Sources of Non-Public Information: In connection with forming and operating our private investment
funds, we collect and maintain non-public personal information from the following sources:
Information we receive from you in conversations over the telephone, in voicemails, through
written correspondence, via e-mail, or on subscription agreements, investor questionnaires,
applications or other forms, and
Information about your transactions with us or others.
Disclosure of Information: We do not disclose any non-public personal information about you to anyone,
except as permitted by law or regulation and to service providers.
Former Limited Partners and Clients: We maintain non-public personal information of our former
Limited Partners and clients and apply the same policies that apply to current Limited Partners and
clients.
Information Security: We consider the protection of sensitive information to be a sound business
practice, and to that end we employ physical, electronic and procedural safeguards to protect your non-
public personal information in our possession or under our control.
Further Information: We reserve the right to change our privacy policies and this Privacy Notice at any
time. The examples contained within this notice are illustrations only and are not intended to be
exclusive. This notice complies with the privacy provisions of the Gramm-Leach-Bliley Act. You may
have additional rights under other foreign or domestic laws that may apply to you.
For further information regarding Goode’s privacy policies, please contact Goode’s Chief Compliance
Officer at 767 Third Avenue, 22nd Floor, New York, NY 10017 or by phone at 646-722-9450.
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Open Brochure from SEC website