Aequitas Investment Management LLC

ITEM 5: FEES AND COMPENSATION
We receive management fees for our management of the Funds. In certain Funds we also receive performance
fees. Management fees are typically 2% of assets. In addition, our affiliated companies may receive other fees in
connection with the Funds’ investment activities. We deduct our management fees from the assets of the
applicable Fund on a monthly or quarterly basis in advance or in arrears, as outlined in each Fund’s governing
documents. We may reduce or waive our management fee at our discretion.

If we were to terminate our management of one of our Funds that pays us management fees in advance, we would
refund to that Fund a pro rata portion of any prepaid management fees, based on the number of days between
the termination and the end of the prepaid quarter.

Performance-Based Fees and Profit Allocations

In addition to the management fees, we or an affiliate may also receive performance-based fees for certain Funds.
The calculation of performance-based fees may include: a 20% carried interest on investment proceeds after the
Limited Partners or Members receive their return of capital and a stated preferred return, a 20% carried interest
on any excess of net income over net loss for the current and all prior fiscal years, 20% of any net capital
appreciation exceeding the loss recovery amount for each capital account, or generally an allocation of the Fund’s
profits after a specified return has been paid to the Fund’s investors. All performance fees are pursuant to each
Fund’s governing documents which the investor receives prior to their subscription. In certain cases, we may
reduce, waive or calculate the performance-based fees differently for certain investors in a Fund as long as such
change does not adversely impact other investors’ interests.

AEQUITAS INVESTMENT MANAGEMENT, LLC                                                                                  3

                                                                      FORM ADV PART 2A – DISCLOSURE BROCHURE

Transaction-Based Fees We or Our Affiliates Receive

Our affiliated companies may receive transaction-based fees or allocations in connection with the investment
activities of certain Funds. These fees may include transaction, advisory, break-up, director, origination and similar
fees. In addition, our affiliated companies receive fees for originating, administering, servicing and collecting
consumer receivables that certain Funds invest in, either directly or indirectly. In addition, certain Funds’ portfolio
companies with which we are affiliated may pay fees to our affiliates for administrative services. These fees paid
to our affiliates may include certain portfolio companies’ share of rent and costs of shared services.

Our affiliated companies’ receipt of transaction-based compensation presents a potential conflict of interest,
because it could incent us to cause our Funds to engage in transactions for which our affiliated companies receive
transaction-based compensation, rather than making investment decisions based only on the Funds’ needs. Our
affiliated companies’ right to receive transaction-based compensation is disclosed in the applicable Funds’ private
placement memoranda and further reviewed by the Conflicts Review Committee prior to entering into a related
party transaction. Intercompany fees and charges are reviewed annually by the Conflicts Review Committee. See
Item 10 for further information on the Conflicts Review Committee.

Our employees do not receive transaction-based compensation, such as asset-based sales charges or service fees
for the sale of private fund interests. They do not sell any other products and do not hold themselves out as
advisers to prospective investors in our Funds. Accordingly, our supervised persons advise prospective Fund
investors to discuss any proposed investment with their own advisers to ensure that the investment is suitable and
is an appropriate addition to their other investments.

Fees and Expenses Payable to Third Parties

Our Funds pay expenses to unaffiliated third parties in addition to the fees we and our affiliated companies receive
as discussed above. For example, our Funds pay fees and expenses to third parties, such as brokerage
commissions, transaction fees, custodial fees, wire transfer fees, servicing fees, lender fees, fund administration
fees, and fees and expenses charged to brokerage and custodial accounts. See Item 12 below for additional
information about our brokerage practices. The Funds may also pay third parties other fees and expenses incurred
in connection with certain portfolio transactions, such as for legal and accounting services. This is further outlined
in each Funds’ private placement memorandum.

Types of Clients

Our only clients are our Funds, as discussed in Item 4 above. Investors in our Funds include “accredited investors”
under Regulation D under the Securities Act of 1933, as amended.

Fund Investor Limitations

We limit the number and types of investors permitted to invest in our Funds. Our Funds offer their securities only
in private placement transactions. Our Funds qualify for exemptions under the Investment Company Act of 1940,
and the securities issued by our Funds qualify for exemptions under the Securities Act of 1933 and the Securities
Exchange Act of 1934 and rely on Rule 506 under Regulation D.

We do not currently permit government entities to invest in our Funds.

Minimum Investment Requirements

We generally do not impose a minimum asset size on our Funds before they commence business. However, we
may require a minimum investment by investors in our Funds, as specified in each Funds’ governing documents.
We reserve the right, in our discretion, to reduce the minimum investment requirement for any investor.

Restrictions on Investment Withdrawals from Our Funds

We impose substantial restrictions on investor withdrawals from our Funds, as described in the applicable Fund’s
governing documents. We reserve the right to waive the withdrawal restrictions in our discretion. If we grant a
waiver, we may require the withdrawing investor to pay any transaction and other costs that are incurred as a
result of the early withdrawal. We may waive certain notice requirements in our sole discretion.

Side Letters

We may allow investor side letters in our Funds.

AEQUITAS INVESTMENT MANAGEMENT, LLC                                                                                  5

                                                                      FORM ADV PART 2A – DISCLOSURE BROCHURE