Blackstone Liquid Credit Strategies LLC

Item 5: Fees and Compensation

Management Fees

For its investment advisory services provided to Clients, the Registrant or an affiliated entity will
typically receive a management fee at an annual rate of up to 2% of either the net assets or invested
capital, which can include capital borrowed from leverage providers, pursuant to the Offering
and/or Governing Documents (as defined below), which are provided to prospective investors.
With respect to 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 can include capital borrowed from leverage providers,
pursuant to the Offering and/or Governing Documents, 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. Fees for the Adviser Clients are
disclosed in the relevant investment management service agreement, to which the relevant Adviser
Client is a party, and in the relevant Offering and/or Governing Documents. Fees for the Managed
Accounts are disclosed in the relevant investment management agreement, to which the relevant
account owner is a party. Such offering and/or governing documents, including the investment
management agreement in the case of an Adviser Client or a Managed Account, when applicable,
will be referred to herein as the “Offering and/or Governing Documents.” Offering and/or
Governing Documents include the collateral management agreement, offering circular and
indenture in the case of a CLO and private placement memoranda, prospectuses, registration
statements, declarations of trust, bylaws, limited partnership agreements, investment management
agreements and similar for other types of Clients. 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, for example by receiving some or all of the fee income associated with a
transaction in which a Client participates.

While the Registrant’s policy is that its fees are not negotiable, the Registrant reserves the right to
determine, in its discretion, to waive, reduce or calculate differently 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 Clients to those Clients
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. Notwithstanding the foregoing, such Blackstone Credit Investors in certain Clients which
are not Regulated Funds, will either directly pay for their pro rata amount of certain Fund expenses
(as described below), or the pro rata share of such expenses will be allocated to the relevant General
Partner or its affiliates. Such pro rata allocations of Fund expenses will, in certain circumstances, be
calculated based on capital commitments, invested capital, available capital or other metrics, as
determined by such General Partner in good faith pursuant to the terms of the applicable Offering
and/or Governing Documents. 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, certain
investments in or alongside a Fund by Blackstone Credit Investors are, in certain circumstances,
treated as satisfying the applicable portion of any required capital commitments of the General
Partner and/or its affiliates to the Funds (even in circumstances where any such commitments or
investments are made following a separation from Blackstone). In addition, with respect to certain
investors invested in certain Clients, in the event any such investor has a capital commitment below
a certain minimum threshold established in the applicable Offering and/or Governing Documents,
such investor will be subject to a servicing fee at an annual rate established in such Offering and/or
...

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).