Ares EIF Management LLC

Item 5. Fees and Compensation
Compensation and Fee Schedules
All Underlying Investors should review the Governing Documents of a Fund for complete
information on fees and compensation.

These arrangements generally provide for each Fund to pay management fees to the Firm quarterly
in advance, based upon a percentage of committed or invested capital of such Fund. Management
fees typically range from 1.00% to 1.75% of committed or invested capital per annum for the
Funds and from 0.20% to 0.70% of committed capital per annum for the Co-investment Funds.
To the extent described in a Fund’s Governing Documents, the following fees are credited towards
an offset of such management fees: transaction fees, placement fees, amounts of capital calls to be
funded by the Firm, and a percentage of all co-investment management fees. The Governing
Documents for certain Funds permit the Firm to agree with the general partner or managing
member of such Fund to negotiate different fee arrangements with certain Underlying Investors.

Deduction of Fees; Timing of Payments; Termination
For many of our Clients, we are authorized under the Client’s Governing Documents to charge
and deduct advisory fees directly from the assets of the Fund or applicable Client account, at the
times and in the amounts set forth in the Governing Documents.

Management fees are generally paid by each Client by (i) requiring Underlying Investors in such
Client to make capital contributions in respect of such fees, or (ii) withholding the amount of such
fees from investment proceeds that would otherwise be distributable to the Underlying Investors
in such Client. Management fees are then paid by the applicable Client to the Firm or one of its
affiliates. In addition, the Firm often has the ability to cause Clients to borrow money for the

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Form ADV Part 2A: Firm Brochure

payment of such fees. Ares EIF has the authority to deduct its management fees from any Client
account.

Base advisory fees for our Clients are payable in advance, generally on a quarterly basis. Please
refer to the applicable Governing Documents for complete information on the timing of advisory
fee payments.

Clients have the right to terminate the advisory or investment management agreements in
accordance with the terms of such agreements. Our general policy is to repay advisory fees paid
in advance in excess of the pro rata portion earned (based on the number of days during the period)
through the termination date. Any such refund would be implemented through a wire transfer of
funds to the affected Clients upon termination of the investment program.

Other Fees and Expenses
Organizational Expenses. Each Fund, subject to its Governing Documents, will typically pay or
otherwise bear (generally up to an agreed amount) all fees, costs, expenses, and other liabilities
incurred in connection with the formation and organization of, or sale of interests in, such Fund,
its general partner or similar person and/or investment manager, including commissions, costs, and
all out-of-pocket legal, accounting, filing, capital raising, printing, electronic database, state and
local formation, “blue sky” filings costs of similar non-U.S. filings and distributions, foreign
registrations, foreign securities distributors, other related legal and organizational matters, and
travel-related expenses (as defined below) in respect of the foregoing (collectively, the
“Organizational Expenses”).

Operating Expenses. In addition to the fees payable to Ares EIF, subject to the Governing
Documents, Funds may pay or otherwise bear all fees, costs, expenses, and other liabilities arising
in connection with its operation, including (but not limited to):
    • any sales or other taxes, fees or government charges that may be assessed against the Fund
       or client or Ares EIF or its affiliates in connection with the activities of such Fund or Client;
    • commissions, brokerage fees and similar charges incurred in connection with the purchase
       or sale of portfolio investments (including any merger fees payable to third parties and
       whether or not any such purchase or sale is consummated);
    • incurred in originating, evaluating, conducting due diligence, investigating, developing,
       negotiating, structuring, settling, obtaining ratings, monitoring, advising or managing,
       valuing, holding, and selling or otherwise disposing of portfolio investments, including
       legal, tax, and accounting expenses in connection therewith (whether or not consummated);
    • computer software specific to the affairs of a Fund or client and market data costs and
       research-related expenses, including, without limitation, news and quotation equipment,
       software and services;
    • capital payments, interest and other expenses in respect of indebtedness for borrowed
       money and all costs and expenses associated with negotiating, structuring, forming and
       holding any credit facility with respect to a Fund or Client;
    • reporting to the Client’s Underlying Investors, and holding meetings or conferences with
       Underlying Investors whether individually or as a group;
    • related to or in connection with any governmental or other inquiry, investigation, audit,
       proceeding or regulatory matter, litigation and threatened litigation involving a Fund
       (including the amount of any judgments, settlements or fines paid in connection therewith);

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Form ADV Part 2A: Firm Brochure

    •   indemnification obligations and expenses;
    •   attributable to administrative, investment banking, commercial banking, accounting,
        auditing, appraisal, tax advisory, tax preparation, legal, external consulting, custodial and
...

Types of Clients
In order to invest in any of the Funds, an Underlying Investor must be an “accredited investor” as
defined by Regulation D under the Securities Act of 1933, as amended, and a “qualified purchaser”
as defined in Section 2(a)(51)(A) of the Investment Company Act of 1940, as amended. The
Underlying Investors include a wide array of institutional, financial, and strategic investors (both
domestic and foreign), including: banks/financial institutions, bilateral and multilateral
government agencies, corporate pension funds, endowments and foundations, family offices, fund-
of-funds, insurance companies, money managers, public pensions funds (state, city, county, police
& fire), strategic energy and power industry participants, and sovereign wealth funds.

We may establish certain funds (“Feeder Funds”) to address particular tax or regulatory
requirements. Each Feeder Fund, if formed, would directly or indirectly be a limited partner of or
investor in a Fund and interests in such Feeder Fund would be held by the investors who elect to
participate in the Fund through such Feeder Fund. Prospective investors should refer to the
Governing Documents of the applicable Fund for complete details on any Feeder Fund established
with respect to such Fund.

Minimum Investment Requirements
The minimum investment in each of the Funds, other than the Co-investment Funds, is stated in
its Governing Documents and is generally $10 million. We may waive this minimum at our
discretion.