Japonica Partners has protected its top quartile hurdle rate intellectual property by filing a utility patent with the US Patent and Trademark Office.
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Japonica Partners has protected its top quartile hurdle rate intellectual property by filing a utility patent with the US Patent and Trademark Office.
The patent-pending structure offers co-investors alternatives at a granular level of stratification relative to performance benchmarks.
"The co-investment structure bases investment manager compensation solely on excess profits, actually cultivating entrepreneurial returns," says Japonica Partners Founder & Managing Partner Paul B Kazarian. "In particular, the best entrepreneurial investment managers, singularly focused on achieving excess profit with respect to a top quartile benchmark, excel with the co-investment structure."
Japonica's patent-pending structure is an entrepreneurial solution to the conundrum faced by pioneering portfolio managers in identifying top quartile investment managers and linking pay to performance.
"Success in the marketplace is indicia of non-obviousness," says George Chaclas, an intellectual property attorney with Boston-based Edwards Angell Palmer & Dodge LLP. "The patent office will consider commercial success during its examination."
Japonica's patent is titled "Co-Investment Structure with Multi-Option Hurdle Rate Alternatives for Performance Based Asset Allocation."
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