Apollo Capital Management LP

Fees and Compensation

Management Fees

The Apollo Managers and their affiliates are entitled to receive Management Fees, though not all
of the investors in Apollo Clients bear the burden of paying Management Fees. For example,
certain affiliates of the Apollo Managers (including their employees) do not pay Management Fees
to the Apollo Managers. The specific payment terms and other conditions of the Management
Fees available to the Apollo Managers are set forth in the applicable Governing Documents. Such
fees are payable to the Apollo Managers monthly, quarterly, semi-annually, or annually in arrears
as set forth in the applicable Governing Documents. However, there can be instances where
Management Fees are paid monthly, quarterly, semi-annually, or annually in advance; in such
cases, the Apollo Managers shall have the right to waive or adjust Management Fees that are paid
in advance, depending on the facts and circumstances.

Management Fees paid to Apollo Credit Managers for investment management services provided
to open-end and closed-end funds are based on net asset value, invested capital (including
borrowed amounts), or other similar metrics.

Investors negotiate terms (including fees and expenses payable to the Apollo Credit Managers)
through Governing Documents. Similarly, Management Fees charged to SMAs and SIFs are
individually negotiated with the investor participating in the managed account or SIF and are set
forth in such SIFs’ or accounts’ applicable Governing Documents.

Management Fees are paid to the Apollo Credit Managers by directly billing or deducting such
fees from the applicable account.

See Item 10 for additional disclosure regarding Management Fees paid by AISG Clients.

Generally, the Management Fees for Apollo Equity Clients are typically calculated as follows: (i)
during the commitment period (e.g., the period during which new portfolio investments are
permitted to be made), the Management Fee is calculated as a percentage of capital commitments
of fee-bearing investors; (ii) after the expiration of the commitment period, the Management Fee
is calculated as a percentage of the adjusted cost of all unrealized investments attributable to fee-
bearing investors; or (iii) over the entire life of such Client and not just after the expiration of the
commitment period, the Management Fee is calculated as a percentage of the adjusted cost of all
unrealized investments attributable to fee-bearing investors. Management Fees are generally paid
to the Apollo Equity Managers by deducting such fees from the applicable Client account or
directly billing the Apollo Equity Client.

The Management Agreement of an Apollo Equity Client is generally terminated upon the winding
up of the Client or in the event a specified percentage of limited partners vote to: (i) remove the
general partner after a “cause” event as described in the Governing Documents of the applicable
Apollo Equity Client; or (ii) dissolve the Apollo Equity Client. Pre-paid Management Fees, net of
accrued expenses for which the applicable Apollo Equity Manager is entitled to reimbursement,
will be returned to the Clients in the event of termination of the Management Agreement, and,
upon such return to Clients, will be returned to the fee-bearing investors in such Clients.

Generally, the Management Fees for Apollo Real Asset Clients are calculated as follows: (i) during
the commitment period (e.g., the period during which new portfolio investments are permitted to
be made), the Management Fee is calculated as a percentage of capital commitments of fee-bearing
investors; (ii) after the expiration of the commitment period, the Management Fee is calculated as
a percentage of the adjusted cost of all unrealized investments attributable to fee-bearing investors;
(iii) over the entire life of the Apollo Real Asset Client and not just after the expiration of the
commitment period, the Management Fee is calculated as a percentage of the adjusted cost of all
unrealized investments attributable to fee-bearing investors; or (iv) on a gross purchase price of
the underlying assets. With respect to Apollo Commercial Real Estate Finance, Inc. (“ARI”), the
Management Fee is calculated based on adjusted net equity of ARI.

The Management Agreement of an Apollo Real Asset Client is terminated upon the winding up of
the Client or in the event a specified percentage of limited partners vote to: (i) remove the general
partner after a “cause” event as described in the Governing Documents of the applicable Apollo
Real Asset Client; or (ii) dissolve the Apollo Real Asset Client. Pre-paid Management Fees, net

of accrued expenses for which the applicable Apollo Real Asset Manager is entitled to
reimbursement, will be returned to the Apollo Real Asset Clients in the event of termination of the
Management Agreement and, upon such return to Apollo Real Asset Clients, will be returned to
the fee-bearing investors in such Apollo Real Asset Clients. For ARI, the Management Agreement
is terminated upon a vote of a specified percentage of independent directors that: (i) the Apollo
Real Asset Manager’s performance is materially detrimental to ARI; or (ii) the Management Fees
payable to the Apollo Real Asset Manager are unfair, subject to the Apollo Real Asset Manager’s
right to prevent a termination by accepting a reduction of Management Fees agreed to by a
specified percentage of independent directors.

As described more fully below, Apollo Managers or affiliates of the Apollo Managers receive fees
and expense reimbursements as consideration for other services provided.

Performance-Based Compensation

Certain Apollo Credit Managers or the affiliated general partners receive performance-based
compensation (e.g., carried interest, incentive allocations, and incentive fees). The specific
payment terms and other conditions of the performance-based compensation available to the
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Types of Clients

The Apollo Credit Managers provide investment advice and serve as investment managers to
pooled investment vehicles, SIFs, and SMAs. In addition, as discussed herein above, certain
Apollo Credit Managers serve as investment advisers or collateral or administrative managers to
CLOs, CDOs and other structured investment vehicles, residential real estate finance companies,
insurance and reinsurance entities, and closed-end, non-diversified investment companies. The
Apollo Equity Managers provide investment advice and serve as investment managers to the
Apollo Equity Clients that fall within Apollo’s Private Equity business segment, as well as the
infrastructure portion of Apollo’s Equity business segment. The Apollo Real Asset Managers
provide investment advice and serve as investment managers to certain Apollo Real Asset Clients
that fall within Apollo’s Real Assets business segment.

Investors participating in Clients (other than ARI) are required to meet certain suitability and net
worth qualifications, such as: (i) an “accredited investor” within the meaning of Rule 501 of
Regulation D under the Securities Act of 1933, as amended (the “Securities Act”); (ii) a “qualified
purchaser” as defined in Section 2(a)(51) of the Company Act and the rules and regulations
thereunder; or (iii) a “knowledgeable employee” within the meaning of Rule 3c-5 of the Company
Act, depending on the applicable eligibility requirements of the respective Client. ARI is a
publicly traded real estate investment trust and does not have suitability or net worth qualifications
for investors that invest through the public securities markets. The minimum investment amount
for Apollo Clients is stated in the applicable Governing Documents and is subject to waiver.

There was no minimum investment amount for AIOF I and certain Apollo Credit Clients advised
by Apollo ST Fund Management LLC, which is one of the relying advisers on ACM.