Form CRS
Scenic Advisement
January 20, 2022
Introduction
Battery East Group, LLC, doing business as Scenic Advisement (“Scenic,” “us,” “our,” or “we”) is registered with the Securities and Exchange Commission (the “SEC”) as a broker-dealer and is a member of the Financial Industry Regulatory Authority (“FINRA”). Our primary broker-dealer business is focused on handling the purchase and sales of private securities. We are affiliated with Scenic Management LLC (“Scenic Management”), an investment adviser that has filed as an exempt reporting adviser with the SEC. This document gives you a summary of the types of brokerage services we provide to third-parties, as well as to our affiliates. Scenic Management provides investment advisory services to privately offered pooled investment vehicles (“Scenic Funds”) and other accounts for certain investors. Brokerage and investment advisory services and fees differ, and it is important for you to understand the differences. When recommending a security to you, we and our registered representatives are acting in a broker-dealer capacity. Please feel free to ask us for more information. There are suggested questions on page 2. Free and simple tools are available to research firms and financial professionals at https://www.investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers and investing.
What Investment Services And Advice Can You Provide Me?
Scenic Advisement’s primary business is acting as a broker-dealer handling primary and secondary transactions for private companies. We focus on assisting employees, company founders, and investors of private companies with the sale of private securities. In addition, we will provide broker-dealer services to our affiliates.
With respect to the Scenic Funds, we provide limited brokerage services to retail investors. These services are limited to providing placement agent and capital fundraising services on behalf of the Scenic Funds, which are proprietary, affiliated privately offered investment funds. In making recommendations to you regarding the Scenic Funds, we do not: (a) consider alternative third-party products; (b) consider allocation size or commitment amounts; (c) tailor investments to an investor's portfolio; or (d) exercise investment discretion. We do not open or maintain brokerage accounts, provide any investment advice, provide ongoing monitoring of investments or provide any other customary securities brokerage services. We do not buy or sell securities for our own account. In our limited role as placement agent for the Scenic Funds, we only make available and make recommendations regarding the Scenic Funds, and do not consider other similar third-party products or other services that may be appropriate for you.
What Fees Will I Pay?
With respect to our primary business of acting as a broker-dealer handling primary and secondary transactions for private companies, any fees paid by the parties to us are negotiated and documented in agreements between us and any party paying us a fee.
As a general matter, we do not earn fees for acting as a placement agent with respect to our affiliated private funds. We are entitled to certain expense reimbursements from Scenic Management, which ultimately are borne by the Scenic Funds. Scenic Management also earns certain fees in connection with investments in the Scenic Funds. For additional information on the fees of Scenic Management, please refer to the offering documents of the applicable Scenic Fund and/or Scenic Management’s Form ADV. 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.
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?
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 we provide you. Here are some examples to help you understand what this means.
We only recommend a limited range of affiliated products (i.e., the Scenic Funds). We do not consider recommendation of third-party products, and there is no consideration of reasonably available alternatives.
Our affiliated investment adviser (i.e., Scenic Management) will earn fees from your investment in an applicable Scenic Fund, and we therefore have an incentive to recommend Scenic Funds to you.
The Scenic Funds are expected to participate as a buyer in certain secondary securities transactions where we are acting as a broker for the seller, and have the potential to receive compensation from the buyer. Accordingly, we have an incentive to recommend Scenic Funds to you.
More detailed information about our conflicts of interest is available in our Regulation Best Interest Disclosure document (which will be provided to you in connection with certain recommendations).
How Do Your Financial Professionals Make Money?
Some of our financial professionals are paid by us, while others are paid through our affiliate Scenic Management. Our financial professionals generally are compensated with a cash salary, bonus, and equity compensation. Our financial professionals are not compensated directly based on the number or size of successful sales of Scenic Funds. Our financial professionals are not incentivized to recommend any particular Scenic Fund over another.
Do You Or Your Financial Professionals Have Legal Or Disciplinary History?
No, we have not been subject to any material legal or disciplinary events required to be discussed in this Form. Please visit https://www.investor.gov/CRS for a free and simple search tool to research us and our financial professionals.
Additional Information
For additional information about our brokerage services, please refer to our Regulation Best Interest Disclosure document, which will be provided to you in connection with recommendations relating to the Scenic Funds. For information relating to our advisory affiliates, please see Scenic Management’s Form ADV, available at: https://adviserinfo.sec.gov/firm/summary/315808. You can also request up-to-date information about us and request a copy of this Relationship Summary (which will be provided at no charge) by contacting Clark Tucker, our Chief Compliance Officer, at 804-965-5400 or by e-mail at: tucker@scenicadvisement.com.
Key Questions To Ask
Ask our financial professionals these key questions about our investment services and accounts:
(i) Given my financial situation, should I choose a brokerage service? Why or why not?
(ii) How will you choose investments for my account?
(iii) What is your relevant experience, including your licenses, education and other qualifications? What do these qualifications mean?
(iv) 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?
(v) How might your conflicts of interest affect me, and how will you address them?
(vi) As a financial professional, do you have any disciplinary history? For what type of conduct?
(vii) 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?