Client Relationship Summary.
At Bardi Co. (“Bardi Co.”, “we”), we believe transparency about our services and fees is central to our relationship with you. Understanding our services and fees allows you to make informed decisions about how you work with us.
Bardi Co. is a is registered as a broker-dealer with the U.S. Securities and Exchange Commission (SEC) offering brokerage services, and as an investment adviser with the state of California offering investment advisory services. It is important to understand how brokerage and investment advisory services and fees differ. In addition to this document, there are a number of free, simple tools and educational materials you can use at www.investor.gov/CRS to: a) research different firms, and b) learn more about financial professionals, broker-dealers, investment advisers and investing in general.
RELATIONSHIPS & SERVICES
“What investment services and advice can you provide me?”
Bardi Co. offers advisory services primarily to corporations and institutional investors, and only occasionally to qualified clients and / or accredited investors. Specifically, we offer Mergers & Acquisitions (“M&A”) advisory services, corporate finance advisory services including capital raises and business valuations services. When we represent a company or a fund that is raising capital, we can offer investment opportunities to corporations, institutional investors and sporadically to qualified clients and /or accredited investors. In particular, we can offer investment opportunities with third party investment funds and private funds that might or might not be affiliated with us. We offer such investment opportunities in our capacity as a broker, and we use private placement memoranda or offering circulars and other marketing material for the purpose of illustrating specific investment opportunities with operating companies or private funds.
As an investment advisor, our services include advising you on buying and selling investments, investment strategies and choosing investment managers. We offer both “non-discretionary” and “discretionary“ advisory services. For non-discretionary advisory services, you receive investment recommendations, account monitoring and reviews, but you make the ultimate decisions about your investments. For discretionary advisory services, you receive investment recommendations, account monitoring and reviews, and we or a separate investment manager buy, sell and make other investment decisions on your behalf without asking you in advance. We will monitor your advisory accounts as appropriate and provide you with an annual review and performance report. You may request these reviews and reports more frequently.
Questions to Ask Our Representatives:
“Given my financial situation, should I choose an investment advisory service?”
“Should I choose a brokerage service? Should I choose both types of services? 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?”
FEES, COSTS, CONFLICTS & STANDARD OF CONDUCT
“What fees will I pay?”
In our capacity as a broker-dealer, no fees are paid to us by you as the investor. Fees are paid by you to the fund or company that we represent as described in the offering documents that we provide to you as an agent of the private fund or company. We, as a broker-dealer, might receive a success fee from the fund or company based on the amount of capital that is subscribed, including the capital that you invest. The more capital is subscribed by you, the higher the success fee received by us. We can also be the investment adviser to the private fund that you subscribe to. In this case, as an investment advisor, we would be the investment manager of the fund and would be compensated based on the asset under management by the private fund itself. When, we also act as the investment manager of the fund, the larger the total assets under management, the higher the management fee received by us. Once you invest in the private funds that we represent, 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 when you subscribe to the private funds that we represent. The private fund that we represent can also be affiliated with Bardi Co., which can create a potential conflict.
The primary fees and costs are generally “asset-based” fees. These fees are calculated as a percentage of the assets in your advisory account (including uninvested cash held through a sweep program). The more assets you invest in your account, the more you will pay in fees, and there is therefore an incentive to encourage you to increase your advisory account assets. The “asset-based” fee you pay is for our investment advice, custody and performance reporting, but does not include the investment management fee for a separate investment manager, and trading/transaction costs, which are additional. We will disclose these fees to you when you enroll. Not all separate investment managers charge an additional fee to clients. If a separate investment manager uses a broker-dealer other than us to execute a trade (commonly referred to as a “step-out“ trade), you will incur additional trading costs. If you custody assets or trade investments at a financial institution other than us, you will pay any additional fees that such institution may charge. Our “asset-based” fee is negotiable and is charged each quarter in advance. You can learn more about our “asset-based” fee schedule and billing practices in your advisory agreement and our Fees and Compensation Item ADV Disclosure Brochure.
Conversation Starter: “Help me understand how these fees and costs might affect my investments. If I give one of the funds that you represent $100,000 to invest, how much will go to fees and costs, and how much will be invested for me?”
"What are your legal obligations to me when providing recommendations? How else does your firm make money and what conflicts of interest do you have?”
We provide recommendations directly to you, but we might also provide recommendations to private funds that you subscribe with. When we provide you with a recommendation as your broker-dealer or 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 recommendations and investment advice, we provide you.
Conversation starter: “How might your conflicts of interest affect me, and how will you address them?”
“How do your financial professionals make money?”
Most of our professionals receive a percentage of the revenue that they generate from our services, which includes transaction-based success fees, investment advisory fees, trails and referral fees. Professionals at Bardi Co. are also eligible to receive financial and recognition awards based on their: a) production, b) length of service with Bardi Co., and c) new business they generate.
“Do you or your financial professionals have legal or disciplinary history? For what type of conduct?”
No, we do not. Please visit www.Investor.gov/CRS for a free and simple search tool to research us and our financial professionals.
You can find additional information about us at www.bardico.com. You can request up-to-date information and request a copy of the relationship summary by calling us at (877) 774 1326.