Arbor Investments Management LLC

Item 7.        Types of Clients

We provide investment management services to several private funds as disclosed in Item 4 of this
Firm Brochure, each of which is exempt from registration under the Investment Company Act.
The Funds limit their respective investors to: (i) “accredited investors” as defined in the Securities
Act of 1933, and (ii) “qualified purchasers” or “knowledgeable employees,” each as defined in the
Investment Company Act, or (iii) if applicable, “qualified clients,” as defined in the Advisers Act.
Investors in the Funds must also meet certain other suitability qualifications prior to making an
investment in a Fund. The Funds are not registered or required to be registered under the
Investment Company Act, are not made available to the general public, their securities are not
registered or required to be registered under the Securities Act of 1933 and Fund interests are
privately placed to qualified investors. Qualified investors include individuals or entities to which
Fund interests are permitted to be sold, which generally includes (i) in the United States, people

or organizations who meet certain net worth, income and/or financial sophistication requirements
as described above or (ii) in other countries, as permitted by the relevant securities laws in such
jurisdiction and in compliance with any foreign offering provisions applicable to Arbor and/or the
Funds. The Funds typically require capital commitments from each investor of $1 million to $10
million, depending on the Fund, although the applicable Fund’s General Partner has, in its sole
discretion, accepted lesser amounts.

The investors participating in the Funds include high net worth individuals, other investment
entities, university endowments, family offices, pension and profit-sharing plans, trusts, estates or
charitable organizations, fund of funds, corporations, limited partnerships, limited liability
companies or other business entities, Operating Partner Team members or other service providers
retained by Arbor, and typically include, directly or indirectly, principals or other employees of
Arbor and its affiliates and members of their families.

Arbor will generally pursue all appropriate investment opportunities through its Fund vehicles,
subject to certain limited exceptions. For certain investments, Arbor requires additional capital in
order to complete a portfolio company transaction and in such cases, reaches out to select investors
and third parties for additional capital. These direct co-investments, when structured as
investments alongside a Fund and not through a separate fund, are not Co-Investment Funds, not
managed by Arbor, are not subject to custody by Arbor and are not deemed to be clients of Arbor.
Nevertheless, Arbor will perform management, advisory and other services for the portfolio
companies in which these co-investment vehicles invest alongside the Funds, generally at no
additional cost to such vehicles except portfolio company fees and expenses (which such expenses
are recorded at the portfolio company).

More specifically, opportunities to participate in co-investment transactions arise when Arbor has
the opportunity for an investment in an existing or prospective portfolio company and Arbor
determines that (i) an investment requires additional capital, (ii) all or a portion of the applicable
opportunity is not required to be offered to a Fund, (iii) the full investment opportunity is not
appropriate for a Fund, whether due to concentration restrictions contained in the Fund’s
Governing Documents or otherwise or (iv) it is advantageous to offer co-investment to third
parties, including Operating Partner Team members and management or founders of the applicable
portfolio company. Such determinations are based on the provisions of the applicable Governing
Documents, Side Letters, agreements with lenders and such other factors as Arbor will consider in
its sole discretion, including those specified in its policies on investment allocation and co-
investments. Subject to any restrictions contained in the Governing Documents of the relevant
Fund or any Side Letter or other terms negotiated with respect to such Fund, in general no investor
has a right to participate in any co-investment opportunity. Arbor’s exercise of discretion in
allocating co-investment opportunities will not always result in proportional allocations among
such co-investors and such allocations can be more or less advantageous to some co-investors
relative to other co-investors. When co-investment opportunities are permitted, it is possible that
the size of the investment opportunity otherwise available to Arbor’s Fund(s) will be less than it
would otherwise have been without the inclusion of such co-investors.

While one or more investors in the Funds are on occasion invited to co-invest in a Fund’s portfolio
companies, Arbor is authorized in its sole discretion to offer any or all of a co-investment

opportunity to investors that are not investors in the Funds. Co-investment opportunities may be
made available to select Fund investors and third parties, including, without limitation,
management or founders of the applicable portfolio company, co-sponsors, strategic investors,
lenders, investment bankers, deal sources (including finders and consultants), other sponsors
(including other private equity or venture capital firms), service providers, Operating Partner Team
members, sector experts, strategic advisors, other persons or entities affiliated, associated or
otherwise known to Arbor or its personnel. Certain service providers, including lenders and
individuals who source transactions, are expected to negotiate co-investment rights or co-
investment priority rights as a component of their compensation in connection with the services
provided.

Although co-investments typically involve investment and disposal of interests in the applicable
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