25 Capital Partners LLC

FEES AND COMPENSATION

25 Capital Partners

For managing an Investment Vehicle, 25 Capital typically receives compensation from fees
based on a percentage of capital under management, carried interest distributions and certain
other fees or expenses related to transactions, all in accordance with the applicable Governing
Documents. Potential investors should review the applicable Governing Documents to fully
understand the total amount of fees to be paid by an Investment Vehicle and, indirectly, by its
investors.

The General Partner of a particular Investment Vehicle will either call capital for management
fees and other expenses or pay such fees and expenses out of current income and disposition
proceeds from the Investment Vehicle. We may negotiate an investor’s fee depending upon
circumstances including, but not limited to, account composition and complexity, as well as
other investor, employee or family relationships, etc. These negotiations may result in us
charging different fees to different investors. We may charge our affiliates, our employees,
our affiliates’ employees, and their family-related accounts a reduced fee, or no fee, for our
services.

In addition to the management fee discussed above, 25 Capital typically receives a
performance-based fee, to the extent allowed by law, usually subject to us meeting certain
goals for the Investment Vehicle. We typically calculate this fee based on a share of capital
gains or capital appreciation of the Investment Vehicle’s assets.

An investor’s ability to withdraw from an Investment Vehicle is limited by the terms of the
applicable Governing Documents. As a consequence, an investor’s ability to terminate the
obligation to pay applicable management fees or carried interest distributions or to terminate
their investment in the Investment Vehicle is limited.

For more specific information regarding fees, potential investors should review the applicable
Governing Documents for the Investment Vehicle in which they consider investing. See
Performance-Based Fees and Side-by-Side Management section below for a further discussion
of fees and the potential conflicts of interest they can create.

25 Capital Ventures

Ventures received a 0.60% per year Management Fee based on Fund I’s total assets under
management during the investment period. Thereafter, the management fee is 0.60% per year,
calculated quarterly, on the most recent quarter end total assets under management.

The management fee is payable quarterly and in advance and is pro-rated for partial quarters.
Ventures deducts management fees from Fund I and does not bill investors for management
fees.

In addition to the management fee discussed above, under certain circumstances Ventures will
receive a 20.0% profit distribution, called a carried interest distribution, from Fund I at least
quarterly. Fund I will pay the carried interest distribution only if certain criteria (a return of
client capital plus a preferred rate of return) are met. Fund I’s Governing Documents contain
a full description of the criteria that must be satisfied before Ventures receives any carried
interest distribution. Ventures chose to reduce the management fee and the carried interest
distribution for certain investors, and waived such fees entirely for other investors employed
by Ventures’ members and their affiliates. See the Performance-Based Fees and Side-by-Side
Management section below for a further discussion of fees and the potential conflicts of interest
they can create.

From December 31, 2015, neither Atlantic nor New Atlantic has any right to receive any portion
of Ventures’ management fees. As discussed in the Advisory Business section above, certain
former employees of Atlantic, through AAM Holdings, retain Atlantic’s rights to receive any
carried interest distributions from Ventures. See Other Financial Industry Activities and
Affiliations and Client Referrals and Other Compensation sections below for further information
regarding Atlantic and New Atlantic.

PERFORMANCE-BASED FEES AND SIDE-BY-SIDE MANAGEMENT

25 Capital Partners and 25 Capital Ventures

As described above under the Fees and Compensation section, we typically receive
performance-based fees and carried interest distributions based on the profit distributions to
investors from Investment Vehicles. The fact that a significant portion of our compensation
(and our investment professionals’ compensation) is directly tied to profit distributions
generated by certain Investment Vehicles may create an incentive for us and our professionals
to make investments on behalf of the Investment Vehicles that are riskier or more speculative
than would be the case in the absence of such compensation. To the extent any Investment
Vehicle is not charged a performance fee, we may have an incentive to favor Investment
Vehicles for which we receive a performance fee.

We take the following steps to address any potential conflicts caused by our fee arrangements:

      We use the applicable Governing Documents to disclose our compensation structure for
       a specific Investment Vehicle to all potential investors before they invest; and
      We provide appropriate training for our employees regarding our duties to our clients,
       including treating all clients equitably, regardless of fee arrangement.

Prospective investors should consult the Governing Documents of the applicable Investment
Vehicle for more information on fees.

TYPES OF CLIENTS

25 Capital Partners and 25 Capital Ventures

We provide management and discretionary investment advisory services to Investment Vehicles
directly, as described in the Advisory Business section above. We do not provide advisory
services individually to the investors in the Investment Vehicles. Investment Vehicle investors
may include, but are not limited to, financial institutions, trusts, pension plans and other
entities, as well as individuals. We do not accept investments from all client types, and many
of our Investment Vehicles are subject to restrictions such as minimum investment size. The
minimum commitment for an investor in an Investment Vehicle is generally $1,000,000,
however, we typically have discretion to accept less than the minimum investment amount, as
set forth in the applicable Governing Documents. In addition, we may reduce or raise the
minimum commitment for any future Investment Vehicle. In addition, the Investment Vehicles
may enter into separate agreements, commonly known as “side letters,” with certain investors,
including our affiliates, to provide such investors with additional, or different, terms than those

specifically described in the applicable Governing Documents. Under certain circumstances,
these side letters could create preferences or priorities for such investors with respect to other
investors.

Investors are typically required to meet certain suitability qualifications as described in the
applicable Governing Documents, such as being an “accredited investor” within the meaning
set forth in Rule 501(a) of Regulation D under the Securities Act. Also, investors will be required
to make certain representations when investing in an Investment Vehicle, including but not
limited to, that: (i) they are acquiring an interest for their own account, (ii) they received, or
had access to, all information they deem relevant to evaluate the merits and risks of the
prospective investment; and (iii) they have the ability to bear the economic risk of an
investment in the Investment Vehicle.

Details concerning the relevant investor suitability criteria are contained in the applicable
Investment Vehicle’s Governing Documents.

METHODS OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF LOSS

25 Capital Partners and 25 Capital Ventures

When acquiring and managing assets for Investment Vehicles, 25 Capital uses an analytical
investment and portfolio management approach. Our investment strategy begins by identifying
potentially attractive opportunities, followed by an asset-level due diligence process. Our
Investment Committee must approve all purchases and sales. We manage the assets using
proprietary analytics and net present value models.

You should understand that no analytic method or investment strategy is riskless. Participation
in an Investment Vehicle is speculative in nature. There is a high degree of risk and there is
the possibility that you could lose your invested capital. There is also no guarantee that our
investment strategy will succeed and be profitable for you.

Investors should understand that 25 Capital’s business depends significantly on our personnel’s
skill and expertise. In particular, if Shaun Ahmad (President) or Scott Shultz (Managing Director)
were to leave 25 Capital, your investment performance may be affected negatively. Ownership
changes may also cause personnel changes. The Tavistock Group and its affiliates may decide
that it is more profitable to sell any of their portfolio companies, including 25 Capital. If 25
Capital’s ownership structure, described in the Advisory Business section above, changes, then
there is a risk that some or all 25 Capital personnel may leave the company.

You should also understand the particular risks associated with investments in mortgages and
other real estate-related strategies. Examples of risks in these strategies include, but are not
limited to:

      real estate price fluctuations;
      mortgage borrower default;

      the mortgage could be invalid or unenforceable to pre-existing legal errors or other,
       more senior, liens;
      mortgage borrower bankruptcy; and
      changes in regulations by federal, state and local governments

Though the specific terms may vary depending on the Investment Vehicle, clients typically
cannot withdraw their capital from an Investment Vehicle, nor are clients allowed to transfer
their Investment Vehicle interests without 25 Capital’s consent. Once you commit capital to
an Investment Vehicle, that capital remains committed throughout the Investment Vehicle’s
life, which may be multiple years, and there is no guarantee that any capital will be returned
to you before the Investment Vehicle is dissolved.

The success of Investment Vehicles might depend partially on 25 Capital’s ability to find suitable
investments. 25 Capital faces competition from other purchasers such as banks, other
investment advisors and institutional investors. This competition might result in increased
purchase prices, which might in turn reduce the Investment Vehicle’s returns to clients.

This section contains only a brief overview of some of the unique risks associated with our
investment strategies. This section is not intended to serve as an exhaustive list or a
comprehensive description of all risks and conflicts that may arise in connection with the
management and operations of the Investment Vehicles. If you are considering an investment
in an Investment Vehicle, you should carefully consider the risks described in the applicable
Governing Documents. You should review the applicable Governing Documents carefully before
deciding to make an investment in an Investment Vehicle. You should also consult your own
advisors, including financial, legal and tax advisors, as you deem necessary before investing in
any Investment Vehicle.

DISCIPLINARY HISTORY

25 Capital Partners and 25 Capital Ventures
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