Blackstone CLO Management LLC Management Series

Item 5: Fees and Compensation

Management Fees

For its investment advisory services provided to CLOs, the Registrant will typically receive a “base
management fee” and a “subordinated management fee,” each as a percentage of the gross value of
assets held by the CLO, which may include capital borrowed from leverage providers, pursuant to
the Offering and/or Governing Documents (as defined below), which are provided to prospective
investors. Fees for the CLOs are disclosed in the collateral management agreement, to which the
relevant CLO is a party, and in the relevant offering documents. Such offering and/or governing
documents, including the collateral management agreement, offering circular and indenture in the
case of a CLO and private placement memoranda, limited partnership agreements, investment
management agreements and similar for other types of Funds, will be referred to herein as the
“Offering and/or Governing Documents.” Notwithstanding this Item 5 and Item 6 below, a
Client’s Offering and/or Governing Documents can provide for a fee structure pursuant to which the
Registrant is compensated on the basis of entirely different criteria, metrics, or circumstances than
those described herein.

While the Registrant’s policy is that its fees are not negotiable, the Registrant reserves the right to
determine, in its discretion, to waive or reduce its fees for certain investors, including, certain
affiliates of Blackstone, current or former senior advisors, officers, directors and personnel of
Blackstone, portfolio companies of Clients and Other Clients, Blackstone Insurance Clients (as
defined below) and “ABF Clients” (i.e., certain funds and accounts advised by BXCI and focused on
asset-based finance, including insurers and other types of investors), personnel of PJT (as defined
below), and investment funds advised by Blackstone Multi-Asset Advisors L.L.C. (“BMAA”)
(including, among other investment funds, side-by-side vehicles sponsored by Blackstone), and/or
charitable programs, endowment funds and related entities established by or associated with any
of the foregoing (including any trusts, family members, family investment vehicles, estate planning
vehicles, descendants and other related persons or entities) and other persons related to Blackstone
(collectively, “Blackstone Credit Investors”). For the avoidance of doubt, in the case of an affiliated
investor that is an Other Client with its own underlying investors, such underlying investors are
generally subject to performance-based fees and/or management fees in connection with their
investment in such Other Client.

Further, the existence of differing management fees for Clients of Blackstone Credit or its affiliates
investing side-by-side will create a conflict of interest for Blackstone Credit and its affiliates with
respect to the allocation of investment opportunities because it incentivizes Blackstone Credit to
allocate investment opportunities that could be appropriate for multiple CLOs to those CLOs who
pay management fees (including on net assets or invested capital) at higher rates. Blackstone
Credit’s investment allocation policy (see Item 16 – Investment Discretion) addresses this conflict
of interest. Any such methodology (including the choice thereof) involves inherent conflicts because
certain methods of expense allocations when compared to other available methods of expense
allocation, benefit or impose expenses on Blackstone Credit Investors, and might not result in
perfect attribution and allocation of expenses. In addition, by virtue of their affiliation with
Blackstone Credit, affiliated investors will have more information about the applicable Client and

its investments than other investors and will have access to information (including, but not limited
to, valuation reports) in advance of communication to other investors. As a result, such affiliated
investors will be able to take actions on the basis of such information which, in the absence of such
information, other investors do not take. If an affiliated investor seeks to transfer its interests or
purchase interests from another investor, such affiliated investor could also be better positioned to
assess the appropriate purchase price for interests sold or acquired and/or identify a purchaser in
the transfer process relative to other investors. Additionally, in case of an investor that is an Other
Client with its own underlying investors, such underlying investors receive, in certain
circumstances, preferential or different terms in connection with their investment in such Other
Client as compared to the other investors. While such affiliated investors and/or applicable Clients
will seek to adopt policies and procedures to address such conflicts of interest, there can be no
assurance that the conflicts of interest described above will be resolved in favor of the Clients or
other investors.

Blackstone Credit from time to time enters into economic and/or other fee sharing arrangements
with respect to one or more Clients and/or certain limited partners thereof and/or more third
parties (including, without limitation, one or more third-party investment funds or investment
accounts for which Blackstone may provide administrative, valuation or similar non-advisory
services and/or receive transaction or other fees with respect to investments), the rights of which
will not generally be made available to other limited partners.

Subject to the applicable Offering and/or Governing Documents, each CLO will generally be
responsible for such CLO’s organizational expenses, including, without limitation, legal, accounting,
filing, travel, meals, accommodations, capital raising, marketing, advertising and wholesaling and
other organizational expenses.

Certain personnel of Blackstone and its affiliates, and the Consultants (as defined herein), will, in
certain circumstances, be seconded to, serve internships at, receive trainings from or otherwise
...

Item 7: Types of Clients

Blackstone Credit generally provides its services and markets its Funds and Managed Accounts to a
limited number of sophisticated investors, namely institutional investors and high-net worth
individual investors capable of understanding the risks of their investments, including the following
types of investors:

   •   Banks and other financial institutions
   •   Insurance companies
   •   Investment companies
   •   Public and private retirement and pension plans
   •   Public and private profit sharing plans
   •   Trusts and estates
   •   Charitable organizations
   •   State and municipal government agencies
   •   Sovereign wealth funds
   •   Hedge funds and funds of funds
   •   High net worth individuals
   •   Corporations
   •   Business entities other than those listed above

Blackstone Credit (a) must have a reasonable belief that potential investors invited to participate
in Clients meet certain eligibility requirements and (b) in each case must satisfy certain
compliance procedures (including anti-money laundering procedures), prior to accepting any
subscription or investment amount. In addition, any separate maintenance or other investment-
related provisions (e.g., minimum account sizes, minimum fee amounts, etc.) will be provided in
the Offering and/or Governing Documents of each Fund or Managed Account, which are made
available to each potential investor prior to investment.

Blackstone Credit also provides its services to Regulated Funds and other Clients that have equity
securities registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or the
U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and
regulations promulgated thereunder (or are subject to substantively similar regulations under the
laws of any non-U.S. jurisdiction) and/or are intended primarily for high-net worth and/or retail
investors (including without limitation, non-institutional investors) that are intended primarily for
high-net worth and/or retail investors (including without limitation, non-institutional investors)
(or Adviser Clients who, in turn, provide services to Regulated Funds and such Client and/or Other
Clients).