Beach Point Capital Management LP

Item 5: Fees and Compensation

    A. Compensation for Advisory Services

The following description of Beach Point’s fees and compensation is intended to provide a summary of the
more typical fee structures shared by certain Clients and is not intended to describe every fee arrangement
to which Beach Point is a party. Beach Point believes that its fees are competitive with those fees charged
by other investment advisers for comparable services; however, comparable services may be available
from other sources for lower fees. Please refer to the account’s governing documents for specific details
regarding all fees and expenses for specific accounts.

From time to time Beach Point has afforded, and may in the future in its sole discretion afford, certain
investors in Funds or certain Clients in the same or similar strategy more favorable economic terms than
other investors in the same Fund or other Clients within the same or similar investment strategy, including
with respect to both management and performance-based fees, generally based on the timing and
aggregate size of commitments of such investor or Client, as applicable, to one or more accounts managed
by Beach Point or its affiliates. Any fees may be reduced or waived entirely by Beach Point or its affiliates
in their sole discretion.

Certain investors in a Fund, including employees, business associates and other “friends and family” of
Beach Point, its affiliates or their personnel, may receive special fee arrangements. This can include related
entities such as trusts, charitable programs, endowments, family investment vehicles and other estate
planning vehicles related to these individuals. Typically, these investors will not pay management fees or
other incentive or performance-based compensation in connection with their investment in a Fund, or they
will pay a reduced rate. All investors, regardless of fee arrangements, are responsible for paying their
allocated portion of all other expenses incurred by the Fund(s) in which they are invested.

Beach Point calculates management fees strictly in accordance with the terms of each Client’s governing
documents. Investors should carefully review the applicable governing documents for the specific rules
that apply to their investment.

    1. Management Fees
As consideration for investment advisory services provided to its Clients, Beach Point (or an affiliate)
generally receives management fees on a monthly or quarterly basis based on annual fee rates, the amount
of which varies depending upon the applicable account, and which is set forth within the terms of the
governing documents, offering documents, investment management agreement or sub-advisory agreement
of such account.

For Beach Point’s open-end Funds, the management fee is generally based on investment strategy of the
relevant Fund. Open-end Funds typically pay management fees ranging from 0.50% to 1.50% of the net
asset value of the relevant Fund per year, paid monthly or quarterly. For certain evergreen Funds within
Beach Point’s Private Senior Loan strategy, management fees are calculated based on the gross asset
value of such Funds, which includes investments funded, directly or indirectly, through borrowings or other
forms of indebtedness (including borrowings or other forms of indebtedness incurred by Fund subsidiaries
or special purpose vehicles). Applying the management fee to the gross asset value of such evergreen

FORM ADV PART 2A                                                                                          5

            FORM ADV PART 2A

funds, including leverage, results in higher management fees payable to Beach Point than would be the
case if the management fees were applied to the net asset value of such evergreen Funds.

In the case of Beach Point’s closed‑end Funds, management fees during the investment period are
calculated quarterly as a fixed percentage, generally ranging from 1.50% to 1.75% per year, based on (i)
aggregate capital contributions less the aggregate distributions made (net of any recalled distributions), (ii)
the aggregate cost basis of the Fund’s investments, or (iii) the lesser of invested capital and committed
capital, as specified in each Fund’s governing documents.

After the expiration of the investment period, the management fee generally remains a fixed percentage
applied against (i) the aggregate cost basis of the Fund’s investments or (ii) the lesser of invested capital
and committed capital, depending on the applicable Fund terms. The base on which management fees are
charged may be reduced for investments that have been completely written off for U.S. federal income tax
purposes or permanently written down to zero by Beach Point or its related person, to the extent provided
in a Fund’s governing documents. Fund investors should review the fee calculation provisions in their
governing documents to understand when, if at all, the management fee base may be reduced.

Beach Point’s fees for Managed Accounts and Single Client Funds are determined on a negotiated basis
based on various parameters including the scope of management involved, the size of the account, and
the particular investment objectives and needs of each Client. Management fees are typically billed on a
quarterly basis and paid in arrears; however, other arrangements may be negotiated with individual
Managed Account and Single Client Fund Clients.

Additionally, collateral management fees for Beach Point-Managed CLOs are payable in arrears only to the
extent that funds are available in accordance with the priority of payments described in the governing
documents of such CLOs and may include a performance fee in the event that certain subordinated note
return thresholds are exceeded. Collateral management fees for Beach Point-Managed CLOs are
calculated as a fixed percentage, generally ranging from 0.40% to 0.50%, and are subject to the provisions
set out in the governing documents of such CLOs.
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Item 7: Types of Clients

As described above in Items 4 and 5, Beach Point Clients and Fund investors may include, but are not
limited to, state and local government pension plans, foreign funds, foreign governmental entities, foreign
pension schemes, individuals, companies, insurance companies, private pension plans, corporate plans,
endowments, trusts, foundations, charitable organizations and other investment funds. Fund investors must
meet the investor qualifications associated with each Fund (which generally require Fund investors to be
“accredited investors” and “qualified purchasers”, as such terms are defined in the federal securities laws).

    A. Managed Accounts and Single Client Funds

Beach Point generally requires a minimum investment of $100 million to open a Managed Account or Single
Client Fund. This minimum may be reduced or waived by Beach Point in its sole discretion.

    B. Open-End Funds

With respect to open-end Funds, minimum investments are generally set forth in each Fund’s governing
documents; however, the general partner or the Board of Directors of a Fund, as the case may be, may
reduce or waive the minimum investment amount in its sole discretion (subject to certain minimum
subscription requirements under Cayman Islands law in the case of certain offshore funds).

    C. Closed-End Funds

The minimum capital commitment for an investor in a closed-end Fund is generally between $5 million and
$10 million; however, the general partner may reduce or waive the minimum investment amount in its sole
discretion.