Blackstone ISG-II Advisors LLC

Item 5 – Fees and Compensation

Management Fees

The management fee charged by the Registrant varies by Client in the amount and on the terms
and conditions as described in each of the relevant Client’s Constituent Documents. Certain of
the Clients are not charged a management fee, although such Clients may still be subject to
management fees with respect to their direct or indirect investments in Underlying Accounts
(including the Underlying Blackstone Accounts) depending on the fee structure of the
Underlying Accounts. Management fees are either withheld from distributions or invoiced, on a
quarterly basis in arrears. With respect to certain of the Clients, the management fee will be
reduced (but not below zero) by an amount equal to 100% of the amount of all management
fees (and, for the avoidance of doubt, not incentive fees or carried interest) borne by such
Client, directly or indirectly, with respect to any Underlying Blackstone Account in which it holds
an investment to the extent payable to Blackstone or an affiliate of Blackstone. However, any
management fees directly paid by the Underlying Blackstone Accounts, their investment
advisers or the Registrant to certain third-party fund or product managers relating to the
Underlying Blackstone Accounts shall not reduce such Clients’ management fees. Certain
Clients’ management fee will be further reduced (but not below zero) by 100% of the amount
of certain organizational expenses (as defined in a Client’s Constituent Documents) not borne
by the Registrant or its affiliates. To the extent such amounts are not fully applied to reduce the
management fee, they will be carried forward for application against future installments of the
management fee until such amounts are fully utilized in reducing the management fee. The
Registrant has, and could, also enter into internal fee-sharing arrangements with the
Underlying Blackstone Managers or their affiliates with respect to the Clients or Underlying
Blackstone Accounts. Any fee-sharing that results from the affiliated nature of the Registrant
and the Underlying Blackstone Managers or their affiliates does not result in incremental fee
cost to the Client.

The Registrant reserves the right, in its discretion, to waive, reduce or calculate differently its
fees for certain investors in the Clients, including, certain affiliates of Blackstone, current and/or
former senior advisors, officers, directors, personnel and/or other key advisors/relationships
(including operating partners, executives, founders and entrepreneurs) of Blackstone, Portfolio
Entities of the Clients and Other Blackstone Accounts, personnel of PJT Partners Inc.,
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 (including associated endowment funds managed by the
Registrant’s affiliates) 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 (“Blackstone Investors”). For the avoidance of doubt, in the case of an affiliated
Blackstone-sponsored fund that is an Other Blackstone Account 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 Blackstone Account.
Notwithstanding the foregoing, such investors will either directly pay for their pro rata share of
certain fund expenses (as described below), or the pro rata amount of such expenses will be
allocated to the general partners or their affiliates. Such pro rata allocation of fund expenses
will, in certain circumstances, be calculated based on capital commitments, invested capital,
available capital or other metrics as determined by the general partners or their affiliates in its
sole discretion. 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 Investors, and will, in certain
circumstances, not result in perfect attribution and allocation of expenses. In addition, to the
extent Blackstone Investors make capital commitments and/or otherwise invest in or alongside
the Clients, any such amounts may, in each general partner’s sole discretion, be treated as
satisfying the applicable portion of any required capital commitment of such general partner
and/or its affiliates to the applicable Client (even in circumstances where any such
commitments or investments are made following a separation from Blackstone). For more
information with respect to the allocation of fund expenses, please see “Expenses” in Item 5
below.

Additional Fees

The Registrant’s management fees, the performance-based allocations (see Item 6 below) and
the expenses described herein are not inclusive of all the fees which the Clients may bear.
Please refer to the Constituents Documents of the applicable Client for a full description of all
such fees and expenses.
The Clients will also be responsible for all management fees, performance-based or incentive
compensation and other expenses associated with any investments in Underlying Accounts.
The Registrant and its affiliates can be expected to receive a variety of other fees as part of the
investment activities of the Clients, including, from or with respect to Portfolio Entities of the
Clients and other persons (including co-investors and joint venture partners). Such fees include,
without limitation, fees for asset and property management; underwriting, syndication or
refinancing of a loan or investment; energy procurement / brokerage fees, fees for
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Item 7 – Types of Clients

The Registrant’s Clients, or their underlying investors, may consist of some or all of the following:
   •   Banks and other financial institutions
   •   U.S. and non-U.S. insurance companies
   •   Investment companies
   •   Public and private retirement and pension plans
   •   Public and private profit-sharing plans
   •   Trusts and estates
   •   Charitable organizations and foundations, including endowment funds thereof
   •   State and municipal government agencies
   •   Sovereign wealth funds
   •   Private investment funds
   •   Corporations
   •   Business entities other than those listed above
   •   High net worth individuals
   •   Family offices
All potential Clients are subject to certain suitability requirements (including that each Client be
an “accredited investor” as defined in Regulation D under the Securities Act of 1933, as
amended (the “Securities Act”), and a “qualified purchaser” as defined in Section 2(a)(51) of
the Investment Company Act of 1940, as amended (the “Investment Company Act”)), and meet
other suitability requirements (including, in some circumstances, a person that is not a U.S.
Person as defined in Regulation S under the Securities Act). Investors in a Client are also
required to meet such suitability requirements. Generally, investors in Clients may in the future
be required to invest a minimum dollar amount as determined in the Registrant’s sole
discretion. The Registrant reserves the right, in its sole discretion, to waive any such minimum
dollar amount.