Algebris Investments UK LLP

Fees and Compensation
The compensation Algebris receives from the Clients is comprised of a management fee based on
a percentage of assets under management, as well as a performance-based fee (i.e., a fee based on
a share of capital gains on or capital appreciation of the assets under management). Management
fees range between 0.25% and 2% per annum, depending on the share class or series of the Fund
and the amount invested, and are typically paid monthly in arrears. Performance fees range
between 0% and 20% of net profits and are typically paid quarterly or annually. Algebris waives
fees for Company employees, members, and affiliates. Additionally, certain initial, or “seed,”
investors in a Fund may pay lower fee rates than those available to subsequent investors.

In addition to the management and performance fees discussed above, the Funds and ND
Accounts are responsible for the payment of administration, brokerage, and custodial fees, as well
as their own operating costs. Such costs include those relating to, among other things: (1) the
charges and expenses of legal advisers, auditors, and consultants; (2) borrowing and trading costs;
(3) taxes and corporate fees payable to governments or agencies; (4) directors’ fees; (5) preparing,
printing, and distributing financial and other reports; and (6) insurance. In addition, an initial
sales fee is charged with respect to certain share classes in the UCITS Funds. A complete
description of fees and expenses applicable to each Fund and ND Account is available in the
relevant offering documents.

Performance-Based Fees and Side-by-Side Management

Performance-based fees may create an incentive for Algebris to make investments that are riskier
or more speculative than would be the case in the absence of a performance fee. Since the
performance fees charged to each Client are based on both realized and unrealized gains, the
Company may receive a performance allocation reflecting unrealized gains at the end of a period
that are not subsequently recognized by the Fund or ND Account. In addition, Algebris may have
an incentive to favor certain Clients from which the Company receives a higher performance fee.
This risk is mitigated by the implementation of detailed allocation procedures and the ongoing
review of Client portfolios by investment and compliance personnel.

Types of Clients
Algebris provides investment advisory services to various collective investment vehicles.

Subject to the discretion of Algebris to accept less, the minimum Fund investment ranges between
US$10,000 and US$5 million, depending on the Fund and share class invested in. Although the
Company has the authority to accept a lesser amount, the minimum investment for a separately
managed account is generally US$50 million.

Methods of Analysis, Investment Strategies, and Risk of Loss
        Methods of Analysis and Investment Strategies

Algebris seeks to take advantage of any mispricing opportunities of companies in the global
financial services industry through a systematic fundamental analysis and assessment of a
company’s intrinsic value. The strategy also tries to exploit mispricing that arises as a result of
operational or structural changes in a company or a change in the macroeconomic, capital
markets, or industry sector environments within which a company operates. These changes can
significantly affect the short, medium, and/or long-term growth prospects, economic return, and
risk profile of a company and thereby substantially impact its intrinsic value. As such, Algebris
will typically seek to take either long or short positions in equity and debt securities of companies
exhibiting one or more of the following characteristics:

   1.   Change in revenue growth prospects;
   2.   Change in projected operating expenses;
   3.   Change in balance sheet quality;
   4.   Speculation regarding a possible sale, disposal, or acquisition;
   5.   Change in execution capability and/or strategic direction due to a change in management;
   6.   Change in capital discipline;
   7.   Change in regulation;
   8.   A change in overall risk appetite; or
   9.   A change in valuation methodology.

Algebris seeks to take long positions in securities when it believes that the market price of a
security is below its estimated intrinsic value and take short positions in securities (typically
through derivatives) when the market price of a security is above its estimated intrinsic value.

Algebris constructs broad-based portfolios, which are represented by companies in some or all of
the following financial sub-sectors, but always dependant on any investment restrictions set out in
the Funds or ND Accounts offering documents: banks, insurance companies, real estate
investment trusts (“REITs”), asset managers, broker-dealers, diversified financial services
providers, companies that derive a significant proportion of their total revenues as suppliers to
financial services and real estate companies, and companies that depend on the provision of
financial services for the sale of their core products. Algebris invests in a wide range of
instruments, including, but not limited to: listed and unlisted equities, debt securities (both
investment and non-investment grade), promissory notes, GDRs and ADRs, options (including
uncovered options), warrants, equity swaps, contract for differences, futures, credit derivatives
and other derivative instruments. Derivatives may be used for investment as well as hedging
purposes. The Funds and a ND Accounts may engage in short sales of securities and may also
retain amounts in cash or cash-equivalents, as considered appropriate.

       Risks of Loss

Investing in securities involves the risk of loss that Clients and investors should be prepared to
bear. An investment in a Fund or a ND Account should only be made after consultation with
independent qualified sources of investment and tax advice. No guarantee or representation is
made that a Fund’s or a ND Account’s investment program will be successful and performance
could be negatively impacted by a number of risks, including, but not limited to:

   1. Liquidity – Certain markets may have a relatively low volume of trading. Securities of
      companies in such markets may also be less liquid and more volatile than securities of
      comparable companies elsewhere.

   2. Legal and Political Risk – Many of the laws that govern private and foreign investment,
      equity securities transactions, and other contractual relationships in certain countries,
      particularly in developing countries, are new and largely untested. As a result, a Client
      may be subject to a number of unusual risks, including inadequate investor protection,
      contradictory legislation, incomplete, unclear and changing laws, ignorance or breaches of
      regulations on the part of other market participants, lack of established or effective
      avenues for legal redress, lack of standard practices and confidentiality customs
      characteristic of developed markets, and lack of enforcement of existing regulations.

   3. Derivatives – The Funds and ND Accounts may make use of various derivative
      instruments, such as convertible securities, options, futures, forwards, and interest rate,
      credit default, total return, and equity swaps. The use of derivative instruments involves a
      variety of risks, including the extremely high degree of leverage sometimes embedded in
      such instruments. The derivatives markets are frequently characterized by limited
      liquidity, which can make it difficult as well as costly to close out open positions in order
      either to realize gains or to limit losses.

   4. Counterparty (Credit) Risk – The Funds and ND Accounts may enter into transactions
      in OTC markets whereby the Clients will be exposed to the risk that the counterparty may
      default on its obligations to perform under the relevant contract. In the event of a

       bankruptcy or insolvency of a counterparty, a Client could experience delays in liquidating
       the position and may incur significant losses.

   5. International Investing – Investing outside the United States may involve greater risks
      than investing in the United States. These risks include: (i) less publicly-available
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