Acorn Capital Advisors LLC

Item 5. Fees and Compensation

Description of Compensation.

The Firm charges investment advisory fees (“Management Fees”) to the Funds in consideration
for its investment advisory services. Management Fees are typically payable quarterly in
advance. The Management Fee rate initially shall be 2.0 percent of the aggregate Capital
Commitments of the Partners. Commencing with the first complete fiscal quarter following the
end of the Commitment Period, the annual Management Fee rate shall be reduced by 0.10
percentage points per year, but shall not in any event be reduced to less than 1.2 percent of the
aggregate Capital Commitments of the Partners. Management Fees paid by the Funds are
indirectly borne by the investors in the Funds. Some Partners may pay lower fees according to
applicable side letters.

In addition, as described in Item 6 - Performance-Based Fees and Side-by-Side Management,
Acorn or its affiliates has the potential to earn performance-based compensation from the Funds
in the form of a carried interest in profits.

Further, pursuant to the governing documents of the Funds, the General Partner, in its discretion,
may elect to offer one or more of the limited partners of the Funds the opportunity to co-invest
alongside the private Fund client with respect to a particular investment. Management Fees and/or
carried interest that may be received by Acorn or its affiliates in connection with co-investment
opportunities will be determined on a deal-by-deal basis.

Payment of Fees.

Management fees, if any, are paid quarterly in advance by the Funds. The Funds’ General Partner
authorizes and makes payment of the management fee, if any, to Acorn. The calculation of the
management fee payable is disclosed to the limited partners in the Funds’ financial statements.

Other Fees and Expenses.
The Funds are responsible for paying its own costs, expenses and liabilities that are incurred or
arise out of the business and operations of the Funds. Such costs, expenses and liabilities include
but are not limited to: reasonable fees and expenses relating to the evaluation, acquisition, holding
and disposition of any investment or potential transaction, insurance, custody, legal, accounting,
auditing, consulting, valuation, appraisal, technology, litigation and indemnification costs; taxes,
filing and other fees or other governmental charges.

The Firm is responsible for paying its own normal operating overhead expenses, including
employee salaries, rent and other expenses incurred in maintaining its place of business (“Acorn
Overhead”). Acorn will be reimbursed for all expenses paid for or on behalf of the Funds except
for Acorn Overhead.

Payment of Fees in Advance.

Acorn receives Management Fee payments quarterly in advance from the Funds. To the extent that
the management agreement is terminated or the Funds are dissolved, the Firm will return any
unearned fees or unused fee offsets, if any, as required under the terms of the Funds’ limited
partnership agreement.

Item 7. Types of Clients

The Firm provides investment advice and portfolio management services to the Funds. The Funds
are related to the Firm because there is majority common ownership and control between Acorn
and the General Partners of the Funds. The Funds are closed-end investment partnerships that do
not accept additional capital after a stated offering period or offer redemption rights or periodic
liquidity to limited partners. The majority of capital held by the Funds’ limited partners is
attributable to corporate investors; institutional investors, including pension plans and insurance

companies; other pooled investment vehicles; and family offices/high net worth individuals. Acorn
may, in the future, manage separate advisory accounts for individual or institutional accounts, as
well as provide co-investment opportunities to limited partners directly in an Acorn portfolio
investment. With respect to co-investment opportunities, each investor makes an independent
decision on whether to invest. Once the initial investment is made, the asset is held until sold or
otherwise disposed. As such, since the investor does not receive continuous and regular
supervisory or management services, such co-investors are not deemed to be clients.