Belstar Management Company LLC

Item 5 - Fees and Compensation

Management Fees

As an investment adviser to the Funds, as further described in the Fund Documents, Belstar received a
management fee generally equal to an annual rate of between 1.25% and 1.50% (the “Management
Fee”). The Management Fee was payable monthly in arrears on the first day of each following calendar
month. In each case, the series’ net asset value was determined for purposes of calculating the applicable
Management Fee as of the first business day of each following calendar month, prior to any reduction for
the Management Fee.

Belstar Management Company, LLC                                                        Form ADV Part 2A

Other Expenses

In consideration of the Management Fee, Belstar paid expenses incurred in connection with its provision
of services to the Funds, including expenses related to Belstar’s office space and utilities; administrative
services; and secretarial, clerical and other personnel, except to the extent such expenses are (i) Fund
expenses as provided below and in the Fund Documents, or (ii) paid for through the permitted use of soft
dollars generated by Belstar-Alta Series 1 and Belstar-Alta Series 2, respectively.

The Funds were responsible for a pro rata share of Fund Expenses. “Fund Expenses” include, among
others, the following fees and expenses of the operations of the Funds including, without limitation: (1)
the Funds’ costs and expenses of organizing the Fund and offering to prospective Investors (e.g., legal,
accounting and administration fees, filing fees and all other out-of-pocket expenses reasonably incurred in
connection with the organization of the Fund production and mailing of marketing materials and travel
expenses); (2) all fees and expenses associated with the restructuring of the Funds; (3) all expenses
incurred in connection with the admission of Investors; (4) all expenses incurred for tax preparation fees,
governmental fees and taxes (or any other governmental charges levied against the Funds), administrator
fees, custodial fees, communications with Investors and ongoing legal, accounting, auditing, administration,
appraisal, bookkeeping, consulting and other professional fees and expenses, including for litigation and
allocable compensation for in-house attorneys and accountants based upon time spent on Fund matters,
and preparation of the Funds’ financial statements and reports; (5) all costs, expenses, and charges incurred
in connection with the investment and trading activities of the Funds (e.g., brokerage commissions, mark-
ups, margin interest, expenses related to short sales, custodial fees, clearing and settlement charges, and
other transaction costs to brokers); (6) professional and other advisory and consulting expenses and travel
expenses incurred in connection with investment due diligence, monitoring or the assertion of rights or
pursuit of remedies (including, without limitation, pursuant to bankruptcy or other legal proceedings, or
participation in informal committees of creditors or other security holders of an issuer); (7) all fees and
other expenses incurred in connection with the investigation, prosecution, or defense of any claims by or
against the Funds; (8) interest on, and fees and expenses arising out of, all borrowings made by the Funds;
(9) expenses of any meetings of the Investors; (10) the costs of any litigation and indemnification relating
to the affairs of the Funds; (11) expenses related to third party research, publications, data and data
services, including real time pricing and market information and historical pricing and other data; (12)
costs of compliance with applicable laws and regulations of governmental and self-regulatory bodies,
including costs incurred by the Adviser and its affiliates in complying with laws and regulations that apply
to any such entities as a result of their services to the Funds; (13) expenses associated with maintaining
the legal existence of the Funds, including administrators’ fees, occupancy costs and other operating costs
of entities that maintain their own offices in certain jurisdictions; (14) all other reasonable expenses related
to the management and operation of the Funds, and (15) expenses associated with the termination of a
Fund. To the extent that Fund Expenses were paid by the Adviser, the General Partner or an affiliate
thereof, the Funds generally reimbursed such party.

All Fund Expenses and all other costs, expenses, liabilities, and obligations of the Funds attributable to a
particular Fund determined by the General Partner in a manner to be appropriate and consistent with
GAAP were be borne by the Investors holding interests in such Funds based upon their relative interests.
All other Fund Expenses and all other costs, expenses, liabilities, and obligations of the Funds not
attributable to a Fund as determined by the General Partner in a manner to be appropriate and consistent
with GAAP, were borne by the Investors as a whole, pro rata to their relative Fund interests. Fund
Expenses incurred with respect to the Funds and other accounts or investment vehicles managed by the

Belstar Management Company, LLC                                                     Form ADV Part 2A

General Partner or Adviser, or an affiliate thereof, such costs were allocated across such entities on a pro
rata basis or on such other basis as the General Partner determined to be fair and reasonable.
Notwithstanding the foregoing, any such expenses were not duplicated across such entities.

Belstar has adopted policies and procedures to ensure that Funds were treated fairly, subject to any
contractual limitations set forth in the relevant governing Fund Documents.

For information on Belstar’s brokerage and transaction costs, please see “Item 12 – Brokerage Practices.”

Item 7 - Types of Clients

Belstar provided discretionary investment advisory services to the Funds, each a pooled investment
vehicle, and not individually to the Investors in Funds. The Investors in the Funds were each (a)
“Accredited Investors” as that term is defined in Rule 501(a) of Regulation D under the U.S. Securities
Act of 1933, as amended (the “Securities Act”), (b) “Qualified Purchasers” as defined in Section
2(a)(51) of the U.S. Investment Company Act of 1940, as amended (the “Investment Company Act”)
and (c) “Qualified Clients” as defined in Rule 205-3 of the Advisers Act. In addition, Belstar may, in the
future, offer investment advisory services to other client accounts or pooled investment vehicles. Belstar
provides discretionary investment advice to the SMA Client in accordance with the agreement between
Belstar and the SMA Client.

The minimum investment for an Investor in the Funds ranged by series from US $1,000,000 to US
$10,000,000. An Investor could make additional investments in amounts of at least $500,000. The
minimum could be reduced or waived by Belstar at its sole discretion.

Item 8 - Method of Analysis, Investment Strategies and Risk of Loss

Methods of Analysis and Investment Strategies

The Adviser’s investment objective was to seek superior returns by investing, directly or indirectly, in
assets and securities that are approved from time to time for investments to be financed by the Term
Asset-Backed Securities Loan Facility Program (“TALF”). The Funds’ portfolios consisted mainly of asset-
backed securities (“ABS”) purchased using leverage obtained through TALF or using leverage from other
providers of secured financing. The securities approved for the TALF program were AAA-rated ABS
whose underlying credit exposures consist of auto loans, student loans, credit card loans, small business
loans guaranteed by the U.S. Small Business Administration (the “SBA”), equipment loans, floorplan loans,
insurance premium finance loans, receivables related to residential mortgage servicing advances, leveraged
loans and commercial mortgages. The Adviser also has the authority to invest in non-TALF AAA rated
assets and engage in hedging strategies.

In addition to making TALF Investments and non-TALF eligible AAA investments, the Funds also made
temporary investments in high-grade assets having not less than a AAA rating or an A1-P1 commercial
paper rating, or other cash management products pending investment or reinvestment by the Funds. The
Adviser in its discretion from time-to-time hedged some of the Funds’ exposure of their portfolio
securities by buying or selling derivative contracts. Although the Funds utilized such hedging techniques
for risk management purposes, there was no assurances that a particular hedge was appropriate, or that
a certain risk is measured properly.

Investment Process

Before an investment decision was made and executed, Belstar’s investment team aligned on the decision.
The security selection process was limited to TALF eligible securities and other AAA rated assets and
therefore predicated on constructing a portfolio that achieves a targeted rate of return subject relative to
a range of market reasonable stress tests. In addition to analysis done on specific securities, the investment
team gathered information via conversations with sell-side trading desks, primarily related to new issuance
supply and price levels, and benefits form market data/research platforms provided by broker dealers.
Belstar relied on the ability of the investment team to evaluate the significance of quantitative data. The
purely quantitative portion of Belstar’s information gathering process is not unique.

Belstar Management Company, LLC                                                      Form ADV Part 2A

Risk of Loss Factors

Investing in securities involves risk of loss that investors should be prepared to bear. The following list of
risk factors does not purport to be a complete enumeration or explanation of the risks involved in an
investment in the Funds or with the Adviser. Each Fund’s Fund Documents provides a detailed description
of the risks of investing in the Funds.

Risks Associated with TALF Loans. TALF loans bear interest at variable or fixed rates. If interest rates
under a loan should rise, then interest expenses would be increased. Illiquidity or declining market value
of the investments will decrease the amount of capital available to pay principal of or interest on its
obligations to the U.S. Government. Since these obligations are secured by various liens, the U.S.
Government could exercise its recourse rights, thereby indirectly reducing the value of Fund investments.
Furthermore, the surrender of collateral to the U.S. Government could result in the liquidation of assets
in a manner that does not maximize investor value and will be senior to and be paid before amounts paid
to investors. The U.S. Government has the discretion to decide which investments qualify for loans under
TALF and has the discretion to make or not make loans. As such, there is a risk that a loan will not be
received under TALF and there will be no ability to make investments on a leveraged basis. The decision
to extend any loans under TALF is at the U.S. Government’s discretion. The U.S. Government will
generally hold security interests in the underlying assets. If there is a default on any interest payment, or
there is otherwise an event of default under a TALF loan, the U.S. Government will have certain remedies
such as foreclosing on its security interests. In the case of TALF loans, the underlying collateral may be
surrendered to the U.S. Government in lieu of continuing payments on such loans. Any remedy of the
U.S. Government under a TALF loan could reduce the value of Fund investments and could result in a
total investment loss.

Risk of Termination of the TALF Program. By its terms, the TALF program matures on a certain date. In
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