Alternative Capital Fund Management LLC

Item 5 – Fees and Compensation

A.      Fee Schedule
The Firm receives fees from the Funds in exchange for investment advisory services. The fees
and compensation payable to ACFM are negotiable and vary among its Funds. However, the
range of compensation is generally as follows:
Alternative Capital Investments, LP (“Fund I”)
        1.      Management Fee
During the first 12 months following the first closing, Fund I shall pay ACFM a quarterly
management fees (“Management Fees”), in advance, of 0.25% (1.0% per annum) of total
commitments as of the opening of each fiscal quarter; provided, however, that the
Management Fee payable after the first closing shall be calculated on the total commitments
as of the date of the first closing. During the second 12 months following the first closing, the
rate of the Management Fees will be increased quarterly to 0.50 % (approximately 2.0% per
annum) of total commitments as of the opening of each fiscal quarter. Thereafter during the
term of Fund I, the Management Fees will be charged at such 0.50% quarterly rate against
Fund I’s net asset value as of the opening of each fiscal quarter. In the sole discretion of ACFM,
it may charge a lower Management Fee lower than those described above or no Management
Fee.
Each Management Fee shall be payable on or before the 10th business day of the fiscal quarter
for which it is payable. If there are contributions or withdrawals by Fund I during a fiscal
quarter, the Management Fee for such fiscal quarter shall be retroactively increased or
decreased, as appropriate, pro rata to the number of days in such fiscal quarter following such
event. Any such increase or decrease shall be added to or credited against the payment of the
Management Fee for the next fiscal quarter.
        2.      Performance-based Fees
At the end of each fiscal year, ACFM shall reallocate from the capital account(s) of Fund I in
respect of such Fund I’s standard class interests to the capital account of ACFM an amount
(the incentive allocation) equal to the result of the applicable incentive allocation rate(s)
multiplied by the amount of the net capital appreciation allocated to such capital account(s)
of such Fund Is for such fiscal year after reduction by an amount equal to the amount of the
management fee debited to such capital account(s) for such fiscal year; provided, however,
that the net capital appreciation upon which the calculation of the incentive allocation is
based shall be reduced to the extent of any balance in the loss recovery account attributable
to such capital account(s); provided, further, that, solely for purposes of calculating the
incentive allocation applicable to a capital account established in respect of Special Class
interests, ACFM shall only take into account realized gains attributable to the underlying opt-
in investment. In the sole discretion of ACFM, the incentive allocation may be waived,
reduced, or calculated differently with respect to Fund I.

                                                                                 Part 2A of ADV:
                                                     Alternative Capital Investments LP Brochure

Alternative Capital Investment Opportunities Fund LP (“Fund II”)
        1.      Management Fee
During the first 12 months following the first closing, Fund II shall pay ACFM quarterly
Management Fees, in advance, of 0.375% (approximately 1.5% per annum) of total
commitments as of the opening of each calendar quarter, except that the Management Fee
payable after the first closing will be calculated on the total commitments as of the date of the
first closing. Thereafter, during the term, the rate of the Management Fees will be increased
to 0.50 % (approximately 2.0% per annum) of Fund II’s net asset value as of the opening of
each calendar quarter. If the determination of net asset value used in the calculation of the
Management Fee for any fiscal quarter is subsequently revised by the managing member for
any reason, the Management Fee calculation for such fiscal quarter shall be retroactively
increased or decreased, as appropriate, for such fiscal quarter. Any such increase or decrease
shall be added to or credited against the payment of the Management Fee for the next fiscal
quarter. In the sole discretion of ACFM, it may charge a Management Fee lower than those
described above or no Management Fee.

Each Management Fee shall be payable on or before the 10th business day of the fiscal quarter
for which it is payable. If there are contributions or withdrawals Fund II during a fiscal
quarter, the Management Fee for such fiscal quarter shall be retroactively increased or
decreased, as appropriate, pro rata to the number of days in such fiscal quarter following such
event. Any such increase or decrease shall be added to or credited against the payment of the
Management Fee for the next fiscal quarter.

        2.      Performance-based Fees
At the end of each fiscal year, ACFM shall reallocate from the capital account(s) of Fund I in
respect of such Fund II’s standard class interests to the capital account of ACFM an amount
(the incentive allocation) equal to the result of the applicable incentive allocation rate(s)
multiplied by the amount of the net capital appreciation allocated to such capital account(s)
of such Fund IIs for such fiscal year after reduction by an amount equal to the amount of the
management fee debited to such capital account(s) for such fiscal year; provided, however,
that the net capital appreciation upon which the calculation of the incentive allocation is
based shall be reduced to the extent of any balance in the loss recovery account attributable
to such capital account(s); provided, further, that, solely for purposes of calculating the
incentive allocation applicable to a capital account established in respect of Special Class
interests, ACFM shall only take into account realized gains attributable to the underlying opt-
...

Item 7 – Types of Clients

 ACFM provides investment advice and management to the Clients. The Firm may in the future
 provide the same or similar services to other privately placed investment funds.
 ACFM intends to restrict the number of Investors in the Funds and will offer interests only
 through non-public transactions in order to maintain their exclusion from “investment
 company” status under the Investment Company Act of 1940, as amended (the “Investment
 Company Act”).
 Prospective investors in the Funds must meet eligibility criteria and are subject to certain
 withdrawal requirements and limitations. Prospective investors are encouraged to
 thoroughly review a Fund’s Constituent Documents, which set forth all of the terms in detail.
 Each investor generally must an “accredited or qualified client” or a “qualified purchaser” (as
 defined in Section 2(a)(51) of the U.S. Investment Company Act of 1940, as amended), and
 must meet other criteria as specified in the Constituent Documents. The minimum initial
 investment is $1,000,000, but commitments of lesser amounts may be accepted at the
 discretion of ACFM.
The Managed Account Clients are required to enter into the Advisory Agreements that, among
other things, set forth the nature and scope of the investment advisory authority of ACFM and
the investment objectives, guidelines and restrictions applicable to the management of the
Managed Account Clients. The minimum initial investment is $1,000,000, but commitments
of lesser amounts may be accepted at the discretion of ACFM.