Arcline Investment Management LP

FEES AND COMPENSATION

        In general, Arcline receives a management fee (the “Management Fee”) and a carried
interest in connection with the provision of its advisory services to the Funds (with the exception
of the Associates Fund). Arcline and/or its affiliates receive additional compensation in
connection with management and other services performed for portfolio companies of Funds and
such additional compensation will offset in whole or in part the Management Fees otherwise
payable to Arcline to the extent provided by the applicable Governing Documents. Investors in a
Fund also bear certain expenses. A summary of the Fund’s fees and expenses follows, but
investors should review the applicable Fund’s Governing Documents for details regarding fee
structure and expenses.

Management Fees

        Each of Fund I, Fund II, Fund III and Fund IV pays a Management Fee that is initially
equal to 2% on an annual basis of aggregate capital commitments (“Commitments”) of investors
that are not designated as “affiliated partners” by the General Partner. Payments are authorized to
be made quarterly in advance. Commencing with a date specified in the Governing Documents
(the “Stepdown Date”), the Management Fee will generally equal 1.75% to 2% of (i) the aggregate
unrecouped bridge financing and investment contributions with respect to the portion of each
investment that has not been disposed of or completely written-off for U.S. federal income tax
purposes, less (ii) the aggregate amount of permanent write-downs of investments that have not
been disposed of, in each case with respect to investors not designated as “affiliated partners,”
subject to potential further reduction to the extent set forth in the relevant Partnership Agreement.

        For Double Eagle CV, the Management Fee will generally equal 1% per annum of (i) the
aggregate unrecouped bridge financing and capital contributions with respect to the portion of the
Double Eagle CV’s investment that has not been disposed of or completely written-off for U.S.
federal income tax purposes, less (ii) the aggregate amount of permanent write-downs with respect
to Double Eagle CV’s investment in each case with respect to investors not designed as “affiliated
partners,” subject to potential further reduction as set forth in the relevant Partnership Agreement.

        As is generally the case in closed-end private equity funds, the Governing Documents
provide that a Fund’s Management Fees will be calculated and charged on a basis that generally
is not tied to the Fund’s then-current net asset value. As further specified in the Governing
Documents, from the effective date of the Fund until the Stepdown Date, Management Fees

generally will be charged based on a formula tied to the amount of the Fund’s aggregate
Commitments (including, where applicable, the amount of any capitalized Transaction Fees (as
defined below) or expenses, including AVCG Compensation and AALF Compensation and related
costs and expenses). However, after the Stepdown Date, Management Fees generally will be
charged and calculated based on a formula tied to the aggregate amount of investment
contributions made by the Fund with respect to investments that have not been disposed of or
completely written off for U.S. federal income tax purposes less the aggregate amount of any
permanent write downs of investments (as required by the Governing Documents) (such
investments, “Impaired Value Investments”) that have not been disposed of, in each case as
determined on the first day of the period with respect to which a determination is being made. Due
to differences in the criteria set forth in their respective Governing Documents, in the event where
more than one Fund participates in an investment, there is the possibility that an investment will
become an Impaired Value Investment for purposes of one Fund’s Governing Documents but not
those of one or more other Funds.

         Under the Governing Documents, where the aggregate value (as determined pursuant to
the Governing Documents) of all remaining investments in a portfolio company is greater than the
aggregate investment contributions with respect to all existing and former investments in such
portfolio company, post-Stepdown Date Management Fees will not be calculated based upon such
appreciated value, and will instead continue to be calculated based on the amount of applicable
investment contributions. Conversely, the Governing Documents do not require Management Fees
to be reduced or refunded following the occurrence of a writedown, decrease (including a
significant decrease) in aggregate value or other event not constituting a complete realization, such
as a partial sale or disposition, reorganization, recapitalization (including recapitalizations
involving dividends), roll-over investment in connection with a sale or dividend distribution,
except in the case of investments meeting the relevant Impaired Value Investment standard under
the Governing Documents, subject to the previous sentence. For the avoidance of doubt, following
the Stepdown Date, if the aggregate value (as determined pursuant to the Governing Documents)
of all remaining investments in a portfolio company that is an Impaired Value Investment is less
than the aggregate investment contributions with respect to all existing and former investments in
such portfolio company as of the date of the reference event, then the amount of the Management
Fee otherwise payable relating to such portfolio company will be reduced solely based on the
aggregate amount of permanent write downs (as required by the Governing Documents) of the
remaining investments.

       As a result of the foregoing, and as is generally the case for closed-end private equity funds,
the amount of Management Fees generally will not correspond with fluctuations in the net asset
value of individual investments or a Fund, including following the relevant investment period, and
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TYPES OF CLIENTS

        Arcline provides investment advice solely to its Fund clients, and references throughout
this Brochure to “clients” and to Arcline’s related duties to and practices on behalf of its clients
and/or investors should be construed accordingly. The Funds generally include investment
partnerships or other investment entities formed under U.S. or non-U.S. laws and operated as
exempt investment pools under the U.S. Investment Company Act of 1940, as amended, and the
rules and regulations promulgated thereunder (the “Investment Company Act”). The investors
participating in the Funds generally include individuals, banks or thrift institutions, insurance
companies, fund-of-funds and other investment entities, university endowments, sovereign wealth
funds, family offices, pension and profit-sharing plans, trusts, estates or charitable organizations
or other corporations or business entities and often include, directly or indirectly, principals,
executives or other personnel of Arcline and its affiliates (including portfolio companies) and
members of their families, AVCG members, AALF personnel or other Service Providers retained
by Arcline or a Fund, as well as executives of portfolio companies (both existing and prior).

        For legal, tax, regulatory, accounting or other similar reasons, Arcline is permitted to form
one or more alternative investment entities to make, restructure, or otherwise hold investments,
including outside the Funds. Generally, in such event, each investor that participates in an
alternative investment vehicle would do so on substantially the same terms and conditions as it

participates in the Funds. Alternative investment vehicle sponsors generally have limited
discretion to invest the assets of these vehicles independent of limitations or other procedures set
forth in the organizational documents of such vehicles and the Governing Documents of the related
Fund.

        The Funds generally have a minimum investment amount of $10 million for third-party
investors. Arcline generally is permitted to waive such minimum investment amount, but
generally will not permit an amount less than $100,000 (or other amounts as specified by Cayman
Islands law to the extent applicable). Fund interests are offered and sold solely to “accredited
investors,” as defined in Regulation D promulgated under the U.S. Securities Act of 1933, as
amended, the (“Securities Act”) and, unless waived in the discretion of the relevant General
Partner, “qualified purchasers” as that term is defined under the Investment Company Act (or
certain qualified knowledgeable Arcline personnel).

            METHODS OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF LOSS

General

        Arcline intends to principally focus on pursuing leveraged buyouts of high-quality middle-
market businesses operating in high-value industrials and industrial technology sectors, that are
headquartered, or have a majority of their business interests, in the United States and/or Canada.
More specifically, Arcline intends to target businesses with total enterprise values and revenue up
to $3 billion and $1 billion, respectively, operating in various industries, including aerospace and
defense, food and beverage, health and safety, life sciences, medical devices, energy infrastructure
and micro-electronics. Arcline is also authorized to make investments in public securities, as well
as debt investments.

        Arcline’s investment strategy comprises several key factors: (i) an organizational structure
designed to foster functional specialization and team productivity; (ii) well-defined, transparent
internal processes to make decision-making processes more efficient for both initial platform
investments and the subsequent add-on acquisitions; (iii) a “business model-first” approach to
investing, which is designed to expand Arcline’s addressable deal flow and allows for insights and
lessons to be applied between sectors; (iv) deep internal research capabilities, reducing the
likelihood of “off-strategy” or flawed investment decisions and increasing confidence in expected
outcomes; (v) dedicated personnel—the AVCG—responsible for rigorously implementing value
creation methodologies to drive growth in recurring revenue, and operational cost savings; and
(vi) a prioritization of talent, collaboration and culture, both internally and within platform
investments, designed to reduce risk in investment performance outcomes and enhance returns.

        There can be no assurance that Arcline will achieve the investment objectives of any Fund
and a loss of investment is possible.

Investment and Operating Strategy

       Arcline intends to make Fund investments using a structured and tested process that is
based on the Arcline investment professionals’ knowledge and experience as implemented in the
Funds. Steps in that process include:

1) Sourcing. Arcline believes that the prior experience and relationships of the Founders and
   Arcline’s other professionals help drive deal flow for the Funds. The Business Development
   Team is focused on driving investment opportunities and capital markets execution. Driving
   optimal deal flow and capital markets execution requires regular and meaningful engagement
   with broad networks of potential sellers and financing sources, including the investment
   banking community, business owners, and other private equity firms. The Business
   Development Team focuses its outreach efforts in targeted sub-industries.

2) Filtering. Arcline has a robust process for filtering opportunities after they are sourced. In
   general, all opportunities for platform investments and portfolio company add-ons are logged,
   and the Business Development Team, the Founders, and senior members from the
   Underwriting Team and Research Team meet regularly to systematically review the current
   opportunities. For Arcline to pursue an opportunity, the underlying business generally must
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