Avila RE Capital LLC

Item 5         Fees and Compensation

The following provides a general description of fees, compensation and expenses for the Funds.
Fund investors should review the applicable Offering Document for further information.

    A. How the Firm is compensated for advisory services. For services provided, AREC
       generally is entitled to receive a management fee (“Management Fee”), which is based on
       an annual rate/percentage of the Funds’ overall commitment. The General Partner, to the
       extent earned, is entitled to carried interest (the “Carried Interest Fee”), which is based on
       the performance of the Fund. With respect to each of the foregoing, such fees are
       calculated in accordance with the terms and conditions set forth in the applicable Offering
       Documents.
         Management Fees payable to AREC are, and may in the future be, reduced by the amount
         of any placement agent fees paid by such Fund (See Item 14 – Client Referrals and Other
         Compensation below). The amount and manner of such reduction is and will be set forth
         in the Offering Documents of the applicable Fund.
         Due to the illiquid nature of the investment strategies, the Fund LPA generally restricts or
         otherwise limits an investor’s right to withdraw their investment in a Fund.
         Additional specific details of Management Fees, Carried Interest Fees, fund expenses and
         fee waivers for the Funds are, and will be, set forth in the AREC Fund’s respective Offering
         Documents.
         A fee schedule is omitted because this Brochure is only being delivered to “qualified
         purchasers,” as such term is defined in the Investment Company Act of 1940, as amended
         (the “Investment Company Act”).
    B. Deduction of fees from Fund assets. The Management Fee is generally deducted from
       the assets of the appropriate Fund and the investors in such Funds are not separately
       billed for such services.
    C. Other types of fees or expenses. In addition to the Management Fee, the Funds will bear
       all ordinary operating expenses and other costs incurred in connection with its investment
       activities and operations. These expenses include, but are not limited to, out-of-pocket
       costs related to sourcing, structuring, negotiating, originating, managing, and disposing of
       investments. This may encompass travel and entertainment expenses (limited to business
       class for international flights and first class for domestic flights), third-party service
       provider fees, and compensation or reimbursements to affiliated entities such as West Bay
       CA II, LLC (See Item 10 - Other Financial Industry Activities and Affiliations) for
       services rendered to the Fund.

         The Funds will also be responsible for interest and fees related to any indebtedness,
         expenses associated with unconsummated transactions, and administrative costs such as
         audit fees, tax reporting, legal and accounting services, and expenses related to the Fund’s
         role as Partnership Representative. Additional expenses may include costs associated with
         LP Advisory Committee activities, formation and maintenance of special purpose vehicles
         or REITs, partner meetings, insurance premiums, indemnification obligations, and fees

    paid to custodians, administrators, legal counsel, accountants, appraisers, and other
    consultants.

    Extraordinary expenses, such as those arising from litigation, regulatory actions, or other
    non-recurring events, may also be charged to the Fund. The Funds will bear any taxes or
    governmental charges levied against it, as well as costs related to partner defaults,
    liquidation of the Fund, and any restructuring activities, including the formation of
    affiliated entities such as AREC SC, AREC PF, and AREC 2024 Aggregator, as
    applicable.

    If a Fund invests through an aggregator or similar vehicle, it will bear its pro rata share of
    all associated expenses, which may include any of the categories described above.
    To the extent any break-up fees or any other types of transaction fees identified in a
    Fund’s Offering Documents are earned in connection with a Fund’s investment
    activities, such fees may be paid to AREC or any of its supervised persons and, generally,
    such fees will be applied as a credit to the next management fee payable by the Funds.

D. Payment of fees in advance. As described further in Item 5.A. and B., the management
   fee is generally paid pursuant to the terms of the applicable Offering Documents.

E. No compensation for the sale of securities. Neither the Firm nor any of its supervised
   persons accepts compensation for the sale of securities or other investment products,
   except as may be described in Item 5.C. of this Brochure.