Arcapita Investment Management US Inc

Item 5:        Fees and Compensation

Fund Fees

Each third-party investor in a Syndication Vehicle generally pays the Arcapita Group an ongoing
management fee (the “Management Fee”) based on an annualized percentage of the amount of
capital invested by such third-party investor, as set forth in more detail in the offering materials
and other governing documents for the Syndication Vehicle (the “Syndication Vehicle
Governing Documents”). The Management Fee is initially charged at the time the third-party
investor invests in the Syndication Vehicle in an amount equal to 5 years’ worth of Management
Fees (the anticipated holding period for the Investments held by a Fund). If a Fund’s
Investments are all exited earlier than the anticipated 5-year holding period, third party investors

will be refunded any paid but unearned Management Fees. Should the holding period for an
Investment be extended beyond 5 years, the Arcapita Group will continue to charge Management
Fees to the third-party investors on an annual basis at the same rate.

Third-party investors may also be charged a one-time subscription fee equal to a percentage of
the capital they invest in a Syndication Vehicle at the time they invest in a Fund, as described in
more detail in the Syndication Vehicle Governing Documents of such Syndication Vehicle. For
Syndication Vehicles that invest in Funds representing private fund strategies managed by a
third-party adviser (a “Third-Party Managed Fund”), investors may also be charged a one-time
acquisition and structuring fee.

In addition to the Management Fees and other fees described above, the Arcapita Group is
entitled to receive a performance fee from the third-party investors in a Syndication Vehicle after
certain performance hurdles have been met, as further described in the applicable Syndication
Vehicle Governing Documents. Such a performance fee represents a portion of each Syndication
Vehicle’s net investment profits.

The management, performance, and other fees described above are generally subject to waiver or
reduction by the Arcapita Group with respect to some or all of a Syndication Vehicle’s investors
in the Arcapita Group’s sole discretion, as further described in the Syndication Vehicle
Governing Documents of each Syndication Vehicle.

Fund Expenses

Each Fund and Syndication Vehicle bears all costs and expenses incurred in connection with the
establishment of the entity and the offering of the interests in the vehicle (including but not
limited to all regulatory fees, legal, accounting and other professional fees, travel and
accommodation expenses, printing costs, marketing costs, and other similar costs). In addition,
each Fund’s Syndication Vehicle and underlying Investments will incur ongoing expenses such
as legal counsel fees, government fees, annual maintenance fees, audit fees and other normal
operating expenses. Such expenses may include, without limitation, Cayman Islands and
Delaware statutory compliance fees, the fees of the members of the Fund’s Board of Directors,
the local administrator, ongoing legal and auditing fees, consulting and reporting expenses,
investment acquisition and disposition expenses, reasonable travel and other expenses in
connection with attending annual and other meetings with or on behalf of the Fund, the Board of
Directors or any committee thereof and in connection with underlying Investments of the Fund.
These expenses will be paid either directly by each such entity or as reimbursements to the
Arcapita Group, if the Arcapita Group has advanced such expenses. Any Co-Investor in an
Investment will bear its pro-rata portion of the relevant expenses.

Investors should note that for any Syndication Vehicle that invests in a Third-Party Managed
Fund, such Third-Party Managed Fund will also be subject to management fees, performance
fees and other expenses, which shall be borne indirectly by any Syndication Vehicle or other
investor in such Third-Party Managed Fund.

The expenses payable by the Funds’ Syndication Vehicles and the underlying Investments
referred to above include service fees payable to members of the Arcapita Group. See

“Management Agreements” below and “Item 8 – Methods of Analysis, Investment Strategies
and Risk of Loss” below for more details.

Investors and prospective investors in a Syndication Vehicle should refer to the Syndication
Vehicle Governing Documents of such Syndication Vehicle and the underlying Fund governing
Documents of such Fund for more detailed information concerning the fees, carried interest and
other expenses that such Fund and Syndication Vehicle will bear.

Sub‐Advisory Agreement

As noted above, Arcapita US has entered into the Sub-Advisory Agreement with AML, pursuant
to which Arcapita US provides ongoing non-discretionary investment advisory services to AML
in connection with the management of the Funds. In consideration for such services, Arcapita
US receives a sub-advisory fee payable quarterly in arrears equal to a percentage of the
Management Fees attributable to such quarter payable to the Arcapita Group (the “Sub-
Advisory Fee”). The Sub-Advisory Fee is not in addition to any fees payable to the Arcapita
Group by a Fund or any Syndication Vehicle.

Management Agreements.

Arcapita US generally enters into a management agreement (a “Management Agreement”) with
each PE Investment, pursuant to which Arcapita US agrees to provide management support and
financial consulting services to such PE Investment. As compensation for such services, such PE
Investment pays Arcapita US a quarterly monitoring fee equal to the greater of a fixed
percentage of such PE Investment’s consolidated EBITDA or an annual minimum fee amount.
In addition to the quarterly monitoring fee, Arcapita US may also receive additional fees from
such PE Investment in connection with financings, add on and divestiture transactions that
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Item 7:          Types of Clients

Arcapita US’s only client is AML and, indirectly, the Funds. Investors in the Funds and the
Syndication vehicles consist of institutional investors and high net worth individuals, primarily
located in the Middle East, though an investment opportunity may, on rare occasions, also be
offered to an institutional or high net worth investor from the United States or other countries.