At a funds inception, the fund raised $250M. The fund will not raise any new capital for 10 years, nor are investors able to withdraw money from the fund for 10 years. The funds investment style is very risk. Short term losses are very possible, but the long-term gains could be incredible. Which of the following statements is most likely FALSE:

1. This fund has a lock up period, in part due to the J-curve effect described above
2. This fund is best suited for institutional and accredited investors
3. The fund charges clients a flat fee of 2 % assets under management
4. The fund charges clients a performance fee based on current AUM vs. the last high water mark
5. Due to the possibility of huge returns, the fund charges clients a performance fee of 20 % assets under management