Alterna Capital Management LLC

Item 5.      Fees and Compensation

Private Credit Fund
For the Private Credit Fund, ACM receives a management fee of 1.1%-1.5% per annum, payable
quarterly in advance and calculated on an investor’s capital commitment during the Private Credit
Fund’s investment period, and on an investor’s funded commitment thereafter. Distributions to
investors in the Private Credit Fund are also subject to carried interest (after return of capital and a
preferred return) payable to ACM, its affiliates, and/or one or more seed investors in the Private
Credit Fund (see also Item 6-Performance-Based Fees and Side-By-Side Management).
Notwithstanding the foregoing, ACM may agree with investors in the Private Credit Fund to
management fees and/or carried interest arrangements that differ from those described above (and
has done so with respect to certain seed investors in the Private Credit Fund).

Expenses of the ACM Funds
Investors in the Private Credit Fund, by virtue of their investment therein, generally bear all expenses
related to the organization of, and the offering and sale of interests in, the Fund (which may include,

without limitation, legal fees, accounting fees and various filing fees) as well as all expenses related
to the Fund’s investment activities and ongoing operations (which may include without limitation,
diligence costs related to the identification of potential investments (whether or not such investments
are consummated)), legal (including diligence, drafting, and negotiation expenses), custody fees,
accounting and tax preparation fees, consulting fees, travel and other costs and expenses incurred in
connection with the acquisition, management or disposition of investments, insurance costs and
litigation and other extraordinary expenses. Notwithstanding the foregoing, investors in the Fund
generally do not bear the costs of compensation of ACM’s personnel and certain other general
overhead expenses of ACM. A more specific description of the types of fees and expenses borne by
the Fund may be found in the offering and governing documents of the Private Credit Fund.

Item 7.      Types of Clients

ACM provides investment management services only to the Private Credit Fund). Investors in the
Private Credit Funds may include, without limitation, individuals, family offices, trusts, other pooled
investment vehicles and corporations. ACM has the discretionary authority to buy, hold and sell,
and determine the securities (and amount thereof) to buy, hold or sell for the Fund.
The Private Credit Fund is closed to new investors.
The Private Credit Fund is offered exclusively to U.S. persons who are “accredited investors” (as
defined in Regulation D under the Securities Act of 1933) and “qualified purchasers” (as defined in
Section 2(a)(51) of the Investment Company Act of 1940), and to non-U.S. persons who are not

subscribing on behalf of U.S. persons.

Item 8.         Method of Analysis, Investment Strategies and Risk of Loss

ACM provides investment management services for Latin America-focused credit investing
through a private markets strategy.

Private Credit Fund
For the Private Credit Fund, ACM seeks income and capital appreciation by pursuing a strategy of
making portfolio investments in private debt instruments using a variety of transaction structures and
types, including, without limitation, special purpose and other investment vehicles, senior secured or
unsecured operating or holding company loans, preferred and subordinated obligations, and certain
derivative instruments such as credit default swaps, total return swaps, and credit-linked notes. As
part of this strategy, ACM also seeks, where relevant and appropriate, customized covenants
designed to optimize lender negotiating leverage, enforceability, and the realization of target
portfolio returns.

ACM’s investment process entails a thorough assessment of the global macroeconomic environment
and opportunities in selected Latin American countries that ACM believes are benefiting from
significant positive changes such as political and economic reforms and stability, a strengthening
economy, increases in capital inflows, a favorable inflation rate and investor confidence. In selecting
investments, ACM also gives emphasis to the underlying financial condition, prospects and other
qualities of issuers or borrowers, as applicable, as well as the extent to which market interest rates
may impact the potential investment return.

GENERAL RISK FACTORS

Overall Investment Risk. All securities investments risk the loss of capital and there can be no
assurance that the Fund will not incur losses (or that investors therein will not lose some or all of
their invested capital).

Dependence on Key Personnel. The success of ACM’s investment activities depend upon the
experience of ACM personnel. The loss of the services of certain ACM personnel could have a
material adverse effect on the operations of the Fund.

Heightened Risks of Emerging Markets Investing. Emerging markets such as those in Latin
America are generally subject to greater market volatility, political, social and economic instability,
uncertain trading markets and more governmental limitations on foreign investment than more
developed markets. In addition, emerging markets may be subject to lower trading volume and
greater price fluctuations than companies in more developed markets. Securities law and the
enforcement of systems of taxation in many emerging market countries may also be less robust and
change quickly and unpredictably. In addition, investments in emerging markets securities may also
be subject to additional transaction costs, delays in settlement procedures, and lack of timely
information.

Financial Institution Risk; Distress Events. An investment in an Alterna strategy is subject to the

risk that one of the banks, brokers, hedging counterparties, lenders or other custodians of some or all
of the portfolios’ assets that Alterna engages (each, a “Financial Institution”) fails to perform its
obligations or experiences insolvency, closure, receivership or other financial distress or difficulty
(each, a “Distress Event”). Distress Events can be caused by factors including eroding market
sentiment, significant withdrawals, fraud, malfeasance, poor performance or accounting
irregularities. In the event a Financial Institution experiences a Distress Event, Alterna and/or its
clients may not be able to access deposits, borrowing facilities or other services for an extended
period of time or ever. Although assets held by regulated Financial Institutions in the United States
frequently are insured up to stated balance amounts by organizations such as the Federal Deposit
Insurance Corporation (“FDIC”), in the case of banks, or the Securities Investor Protection
Corporation (“SIPC”), in the case of certain broker-dealers, amounts in excess of the relevant
insurance are subject to risk of loss, and any non-U.S. Financial Institutions that are not subject to
similar regimes pose increased risk of loss. Although in recent years governmental intervention has
resulted in additional protections for depositors, there can be no assurance that governmental
intervention will be successful or avoid the risk of loss, substantial delays or negative impact on
banking or brokerage conditions or markets.

Competitive Market for Investment Opportunities. The activity of identifying, completing and
realizing on attractive investments involves a high degree of uncertainty. There can be no assurance
that the Fund will be able to locate and complete attractive investments that fall within the Fund’s
investment objective and strategy, or that the Fund will be able to invest fully its subscribed capital
in a manner consistent with its investment strategy.

Interest Rate Risk. Investments in the Fund is subject to interest rate risk, which generally causes
the value of a fixed income portfolio to decrease when interest rates rise. The Fund may be subject
to a greater risk of rising interest rates when rates are low, and the resulting effect of potential
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