Atlantic Creek Investment Management LLC

Item 5 – Fees and Compensation

A.       Compensation for Advisory Services

ACIM receives asset management fees and performance-based fees (carried interest) and allocations
from the ACRE Funds. The specific payment terms and other conditions of these fees and allocations
are set forth in the relevant ACRE Funds’ Documentation.

ACIM may waive or modify the management fee and performance-based fees with respect to any
ACRE Fund for investors who are members, principals, employees, or affiliates of ACIM (or an
affiliate), and relatives of such persons and advisers to ACIM (or an affiliate).
Management Fee

The following is a summary of the fees ACIM charges clients and the method used to calculate the
management fees paid by the ACRE Funds to ACIM:

     •   The management fee is due and payable in advance on a quarterly basis;
     •   management fees are deducted from ACRE Fund’s assets based on the approach agreed to
         between ACIM and each ACRE Fund, as set forth in the ACRE Fund Documentation;
     •   the management fee for direct investors is equal to 1.5% per annum of the aggregate capital
         commitments and, after the close of the relevant ACRE Fund’s commitment period, equal to

       1.5% of the aggregate average daily balance of each limited partner’s net invested capital in
       respect of its investment during such quarter; and
   •   the management fee for investors entering any ACRE Fund through Morgan Stanley is 1.75%
       per annum of the aggregate capital commitments and, after the close of the relevant ACRE
       Fund’s commitment period, equal to 1.75% of the aggregate average daily balance of each
       limited partner’s net invested capital in respect of its investment during such quarter.

Carried Interest

Each ACRE Fund allocates to its general partner (and/or its affiliate) a carried interest distribution
based on net cash flows to the fund in an amount of up to 20% of the fund’s distributable cash after
the return of limited partners’ capital contributions and a preferred return to limited partners, subject
to a 50% general partner catch-up, as set forth in the ACRE Funds’ Documentation. All performance-
based compensation payable to ACIM will be effected in a manner consistent with the requirements
of Section 205 of the Advisers Act and Rule 205-3 thereunder.
The terms of the carried interest distributions could incentivize ACIM to make decisions regarding
potential investments and the timing and structure of realization transactions that may not be in the
best interests of the ACRE Funds (and their investors). For example, ACIM may be incentivized to
make more risky or speculative investments than it would otherwise make in the absence of
performance-based compensation.

Fee Waivers/Reductions

Limited partners of the ACRE Funds have and may in the future negotiate different fee terms than
those set forth in the ACRE Funds’ Documentation and described above.

Indemnification

The ACRE Funds are obligated to indemnify ACIM, its personnel, and certain of their affiliates under
circumstances set forth in the relevant ACRE Funds’ Documentation.

Investors Participating in Subsequent Closings

Investors admitted at any closing after the relevant ACRE Fund’s initial closing are required to
contribute to that ACRE Fund an amount equal to the capital commitments that would have been
drawn down had those persons been limited partners from the time of that ACRE Fund’s initial
closing (plus interest). This amount will include each limited partner’s proportionate share of
management fees, acquisition fees, fund expenses, original costs of fund investments and any
outstanding preferred return.

Valuation

The value of the ACRE Funds’ investments is relevant to numerous aspects of those entities, including
certain management fees borne by those entities. Because the basis of the management fee paid by
an ACRE Fund (after the close of that fund’s commitment period) is based on net invested capital,
which is reduced by any investments that are written off by the fund, ACIM, and its affiliates may be
incentivized to refrain from writing off a fund investment to increase the amount of the management
fee payable by the ACRE Fund. ACIM maintains valuation policies, which provide guidelines for
valuing the ACRE Funds’ investments.

B.      Method of Fee Payments

Pursuant to the terms of the ACRE Funds’ Documentation, the ACRE Funds pay management fees
on a quarterly basis in advance.

Any carried interest is generally allocated to the relevant ACRE General Partner’s capital account on
a quarterly basis based on the relevant ACRE Fund’s investments’ fair values, in the aggregate, and
distributed from time to time-based on net cash flow after limited partners have received 100 percent
of their invested capital and preferred return, subject to applicable catch-up provisions.

C.      Other Fees/Expenses

Fund Expenses

     ACIM is responsible for the following ordinary day-to-day expenses incidental to the
     administration of the ACRE Funds:
         •   all costs of providing to the ACRE Funds and ACIM the office space, facilities, utility
             service, supplies, and necessary administrative and clerical functions connected with the
             ACRE Funds’ business; and
         •   all costs relating to the compensation of ACIM Personnel.

     Each ACRE Fund will bear all expenses incurred in connection with the organization and
     formation of the fund, its ACRE General Partner, the fund sponsors, any parallel funds, and the
     offering of interests in the fund, up to an amount specified in the relevant ACRE Funds’
     Documentation. Organizational expenses in excess of that amount will be borne by ACIM.
     Each ACRE Fund will bear all of its own costs, expenses, and liabilities determined by its ACRE
     General Partner that are incurred by or arising out of the operation and activities of the fund
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Item 7 – Types of Clients

As noted in Item 4 above, ACIM provides discretionary investment advisory services to the ACRE
Funds (which may be organized as domestic or foreign partnerships, corporate or other incorporated
or unincorporated entities). ACRE Fund investors include high-net-worth individuals, family offices,
foundations, charitable foundations, and institutional investors/pension plans.
Interests in the ACRE Funds and the ACRE Funds themselves are not registered under the Securities

Act or the 1940 Act, respectively. Accordingly, interests in the ACRE Funds are offered exclusively
to investors satisfying the applicable eligibility requirements either in private placement transactions
within the United States or in offshore transactions, and the ACRE Funds are excepted from the
definition of an “investment company” under Section 3(c)(1) and/or Section 3(c)(7) of the 1940 Act.
Investors in the ACRE Funds are required to complete and submit a subscription agreement binding
them to the terms of the relevant ACRE Funds’ Documentation. The minimum investment is generally
$5 million for the ACRE Funds. However, that minimum investment amount for ACRE Fund investors
may be reduced at the discretion of the applicable ACRE Fund General Partner, depending on the
investor relationship and in accordance with the relevant ACRE Funds’ Documentation.