1505 Capital LLC

Item 5 – Fees and Compensation
All fees are subject to negotiation between 1505 Capital and its clients. Among the multiple factors
1505 Capital considers are the size (and potential size) of the account, the type of assets managed,
and the nature of the services provided. Fees and compensation can include base management fees,
performance-based or incentive fees, fixed fees and/or consulting fees. The manner in which fees
are charged by 1505 Capital is set forth in each client’s respective written Investment Management
Agreement.
Typically, 1505 Capital charges a base management fee (the “Base Fee”) for investment advice.
Generally, Base Fees range from 0.25% to 0.50% per year on the principal amount of the assets
managed by 1505 Capital, generally payable quarterly in arrears.
For providing Operational Service Consulting (as described in Item 4), 1505 Capital typically
charges 0.25% per year (the “Operational Service Consulting Fee”), generally payable quarterly in
arrears.
Except as otherwise agreed with a client, 1505 Capital bills on assets with values that fluctuate
during the relevant period in the following manner: For assets with no fixed amortization (e.g.,
collateralized loan obligations and commercial mortgage-backed securities), 1505 Capital uses an
average balance method for billing purposes – the values of the asset as carried in 1505 Capital’s
accounting records at the beginning and end of the quarter, respectively, are averaged before
computing its Base Fee. Where assets have a fixed amortization schedule, 1505 Capital bills on the
actual balances.
In addition to Base Fees, certain clients are charged performance-based fees (“Incentive Fees”).
Formulation of Incentive Fees will vary for different accounts and strategies and may accrue on a
“Transaction-by-Transaction” or “Strategy-by-Strategy” basis when returns on investments
expressed on a percentage basis (“Returns”) exceed an agreed-upon hurdle rate for such Strategy
(the “Hurdle Rate”). Hurdle Rates will be individually negotiated with each client and are expected
to range from 6.0% to 10.5% per annum, depending on the Strategy or the Investment and market
conditions at the time the Hurdle Rate was set. In certain cases, Hurdle Rates may be subject to
mutual adjustment based on factors related to client capital costs and other factors that may also be

individually negotiated. Incentive Fees are generally determined by 1505 Capital within 90 days:
   (i)     after the maturity (or other final disposition or realization) of an investment, in the case
           of “Transaction-by-Transaction” arrangements. Such determinations are based solely on
           realized proceeds from the investment; or
   (ii)    after the end of the calendar year, in the case of “Strategy-by-Strategy” arrangements.
           Such determinations may be based on realized proceeds from the investment and may
           also factor in “mark-to-market” gains or losses.
Incentive Fees are structured in accordance with Section 205(a) of the Advisers Act and the rules
and regulations promulgated thereunder.
Base Fees and Operational Service Consulting Fees are invoiced directly to clients. Incentive Fees
may be invoiced directly to clients or deducted from net disposition proceeds. Base Fees,
Operational Service Consulting Fees and Incentive Fees may vary from client-to-client and may be
payable more or less frequently depending upon the client and the arrangement.
Generally, 1505 Capital does not require prepayment of fees unless otherwise permitted under the
Investment Management Agreement. If prepayment has been provided for, 1505 Capital will, in the
event of a termination, return a proportionate amount of the prepaid fees to the client based upon
the unused portion for the period in which the termination occurred.

Expenses Charged to Investors
1505 Capital’s clients may pay, in addition to Base Fees and Incentive Fees, such other expenses
as are agreed between 1505 Capital and the client in the Investment Management Agreement, or
other written agreement. Such expenses may include, without limitation, fees, costs, and expenses
relating to the acquisition and disposition of assets, investment-related expenses, indebtedness
expenses, taxes, fees and other governmental charges, auditing and tax preparation expenses,
custodial expenses, professional fees, data service fees, fees and expenses of accountants and
counsel, litigation and indemnity costs, and other extraordinary expenses.
Although 1505 Capital does not generally use the services of broker-dealers for the purpose of
executing investments on behalf of its clients, in the event that it chooses to use a broker-dealer for
limited purposes relating to an investment on behalf of a client, such client will incur brokerage and
other transactional costs.
Supervised persons of Registrant may receive consulting and/or similar one-time fees for service
from third parties and/or own either control or non-control positions in sub-advisers or other entities
from whom 1505 Capital intends to source direct investments. Conflicts of interest may arise
relating to client investments in third parties that have paid such consulting fees.

Item 7 – Types of Clients
1505 Capital, on its own and as sub-adviser, provides investment services for institutional third-
party clients. 1505 Capital also manages assets for affiliates such as American Life. The firm’s
client base includes insurance companies and may include other institutional clients in the future.
Although 1505 Capital does not currently do so, regardless of client type, it may seek a minimum
dollar fee or a minimum mandate size in an amount typically equal to $10,000,000.