BlackRock Alternatives Management LLC

Item 5. Fees and Compensation

Fees Paid to Adviser by Third-Parties
With respect to certain BlackRock Private Funds and separate accounts an Adviser, BlackRock or any of their
directors, managers, members, officers, officers, or employees (“BlackRock Employees”) or affiliates may at
times receive commitment fees, structuring fees, administrative agency fees, break-up fees, financing fees,
directors’ fees, consulting fees, transaction fees, advisory fees, closing fees and other similar fees from a
portfolio investment of or counterparty to such BlackRock Private Fund or institutional separate account,
respectively, as well as placement or other similar fees payable to a broker-dealer (“Third-Party Fees”). The
management fee received by an Adviser from a BlackRock Private Fund or separate account or one of its
affiliates may be reduced by the amount of Third-Party Fees received by such Adviser, BlackRock, its
affiliates or BlackRock Employees. Subject to any applicable law or regulation, the extent to which an Adviser,
BlackRock, its affiliates or BlackRock Employees may retain such Third-Party Fees, if at all, and further
details of any such Third-Party Fees, are included in such BlackRock Private Fund’s OM and/or governing
documents or the IMA governing the separate account, respectively.

Various conflicts of interest may exist when Third-Party Fees can be retained by an Adviser, BlackRock, its
affiliates or a BlackRock Employee and are not required to be applied to reduce the amount of the
management fee received by such Adviser. For an additional discussion of the conflicts of interest arising
from the retention of Third-Party Fees by an Adviser, BlackRock or BlackRock Employees, please refer to Item

Item 7. Types of Clients

Certain of the BlackRock Private Funds operate using “master-feeder” structures, pursuant to which trading
operations reside in a “master fund" while investors access the master fund directly or invest through one or
more “feeder funds” that, in turn, invest (directly or indirectly) in the master fund. BlackRock Private Funds
can also use special purpose vehicles to aggregate investments by BlackRock Private Funds into certain
underlying investments or for structuring purposes, or parallel fund structures that divide investors for tax or
other purposes.

BlackRock and its related persons often invest in and/or serve as general partner or managing member, or
on the board of directors or advisory board, of a BlackRock Private Fund. BlackRock, and its related persons
generally act as investment manager or otherwise exercise investment discretion with respect to certain
BlackRock Private Funds and often provide services other than advice (including, but not limited to,
administration, organizing and managing the business affairs, executing and reconciling trades, preparing
financial statements and providing audit support, preparing tax related schedules or documents, and sales
and investor relations support, diligence and valuation services) to such funds, in some cases for a fee
separate and apart from the advisory fee. A BlackRock Private Fund often pays or reimburses BlackRock for
certain organizational and offering expenses and operating expenses related to the BlackRock Private Fund.

Institutional Separate Accounts

As discussed above in Item 4 (“Advisory Business”), BAMLLC provides investment management services
directly to institutional clients through separate accounts or single investor funds pursuant to a negotiated
IMA or other governing documents between BAMLLC as the investment adviser and the client.

As part of its institutional separate account business, BAMLLC develops and employs investment strategies
to meet specific client risk profiles. An institutional client typically consults with BAMLLC at the outset of the
investment adviser-client relationship to establish customized investment guidelines applicable to
BAMLLC’s management of the client’s account, and such guidelines are expected to often vary significantly
among institutional accounts with the same investment objective.