Avance Investment Management LLC

Item 5: Fees and Compensation

The fees and expenses applicable to each of the Funds are set forth in detail in the corresponding
Offering Documents. A brief summary of such fees is provided below.

Management Fee

Avance and/or its affiliates (e.g., the General Partner) is to be paid an investment management fee
(“Management Fee”) of not more than 2.0% per annum of the committed or invested capital of the
Fund I Vehicles and Fund II Vehicles, dependant on where the Funds are in their investment life cycle.
The Firm and its affiliates may share the Management Fee with investors as determined by the General
Partners in accordance with the Funds’ Offering Documents and other governing documents, and has
entered into such an arrangement with the Main Fund I and Fund I AIV’s anchor investor through an
interest in Avance’s revenues (including, among others, the Management Fee). The Firm and or the
General Partners, in their sole discretion, may waive or modify the Management Fee for any Investor.

Management Fees charged with respect to each Investor of Fund I AIV are paid in accordance with the
Main Fund I’s Partnership Agreement section 5.1 - Management Fee.

Please refer to the Co-Investments Offering Documents for information on the Management Fee.

Other Types of Fees or Expenses

Avance and or/ its affiliates may receive monitoring fees on a quarterly basis from some of the Funds’
portfolio companies. From time to time, Avance and or/ its affiliates receive administrative service fees,
consulting fees, closing fees, investment banking fees, director’s fees, transaction fees, management
contract termination fees, acceleration fees, financing fees, corporate services fees, commitment fees,
professional services fees, advisory fees, integration service fee and certain other fees from portfolio
companies or proposed portfolio companies and break-up fees. The Funds’ obligation to pay the
Management Fee is reduced or offset by any such fees in respect of a portfolio company (with any
excess to be carried forward) as set forth in the Funds’ Offering Documents. The Funds’ share of any
of the fees described above shall be allocated among the Fund I Vehicles and Fund II Vehicles Investor
in proportion to their relative sharing percentages in the portfolio company with respect to which such
fees are attributable, and the amount so allocated to each Fund I Vehicles and Fund II Vehicles Investor

Avance Investment Management, LLC                                       Form ADV Part 2A Brochure

credited against the Management Fees payable with respect to such Fund I Vehicles and Fund II
Vehicles Investor.

From time to time, qualified industry executive advisors who are not employees , nor are affiliates of
the Firm may receive transaction fees, equity in a portfolio company or other compensation in
connection with making, managing, acquiring, or disposing of the Funds’ investments or the provision
of arms’ length services. Any such fees, equity or other compensation so paid to any such industry
executive advisors will be retained by such advisors and will not reduce the Management Fee. More
information can be found in the Funds’ governing documents.

The Firm is required to pay all Management Expenses associated with conducting its activities.
“Management Expenses” shall mean the costs and expenses incurred by the Firm in providing for its
normal operating overhead, including, but not limited to, compensation of its employees and the cost
of providing relevant support and general services (e.g., office rental, secretarial, clerical and the Firm’s
bookkeeping expenses) but not including any Fund Expenses described below and, in the Funds’,
Offering Documents, including the Limited Partnership Agreement. The Funds are responsible for all
Organizational Expenses up to an aggregate cap in the Offering Documents and all Fund Expenses,
expenses associated with the Advisory Board and other advisory councils or investment committees/
The General Partners or the Firm will bear the cost (through an offset against the Management Fee or
otherwise) of all Organizational Expenses in excess of the aforementioned cap, if any, and of any
placement agent fees incurred in connection with the formation of the Funds.

“Organizational Expenses” shall mean expenses, (including without limitation, fund-raising,
attendance at any fundraising conferences, travel (including without limitation, transportation,
accommodation and meal expenses but provided that any amounts included for air travel shall not
exceed the then applicable first-class commercial air travel rates)), printing, legal, communication,
marketing, administrative, mailing, courier, legal, filing, capital raising, accounting, vetting of potential
Investors (prior to the Final Closing Date), preparing and distributing materials for “most-favored
nations” elections and processing of requests for elections in connection with the same, and regulatory
compliance fees and/or expenses (including U.S. state “blue-sky” filings, and the initial registrations,
filing and compliance contemplated by the AIFMD) incurred (whether before, on or after the date hereof
and whether incurred by the Funds, the General Partner, the Firm or any of their respective Affiliates)
in connection with the planning, formation, organization, documentation, funding and start-up of the
Funds, the General Partners, the Firm, any Parallel Fund and any Parallel Fund General Partner and in
connection with the subscription by the Investors for Investor interests in the Funds (including, without
limitation, preparation and negotiations with respect to the private placement memorandum,
supplements thereto, investor presentations, marketing materials, due diligence questionnaires, the
Limited Partnership Agreement, subscription documents, any side letter or similar agreements); but not
including any Placement Fees.
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Item 7: Types of Clients

Our clients are the Funds, as described in Item 4 above, and the Funds are generally open to, among
others, institutions, pension plans, endowments, and other sophisticated investors who are both
accredited investors and qualified purchasers, as discussed above, subject to the General Partner’s (or
Firm’s) authority to waive any such requirements in its discretion.