Blackstone NWI Asset Management LLC

Item 5 – Fees and Compensation
compensation from Clients or Underlying Managers. Please see Item 11 – Potential Conflicts of
Interest.
Although not currently utilized by BNAM or the BNAM Funds, Arcesium LLC (“Arcesium”) may,
at some point in the future, provide certain middle- and back-office services and technology to
the BNAM Funds. Arcesium provides services to affiliates of BAAM and funds managed by the
Hedge Fund Solutions Group (the “HFS Arcesium Clients”). BAAM holds a non-controlling,
minority equity interest in Arcesium and the HFS Chief Operations Officer serves on the board
of Arcesium. The services and technology provided by Arcesium support various post-trade
activities, including trade capture, cash and position reconciliations, asset servicing, margin and
collateral monitoring, pricing-related services, portfolio data warehousing, and other services
and technology as agreed upon. BAAM will not require BNAM to hire Arcesium.
In return for such services, Arcesium typically would be expected to receive from the BNAM
Funds a one-time upfront implementation fee, an annual software fee (based on the BNAM
Funds’ complexity and net asset value), and an annual operations services fee (also based on
the BNAM Funds’ net asset value), as negotiated by the applicable client and Arcesium (such
fees in the aggregate, the “Arcesium Fees”).
In connection with BAAM’s minority equity ownership interest in Arcesium, BAAM is expected
to receive cash distributions from Arcesium from time to time. Subject to applicable law
(including ERISA), such cash distributions are expected to be used to reimburse BAAM for the
operating expenses of Arcesium which BAAM has previously paid. Following such expected
reimbursement, any further cash distributions received by BAAM from Arcesium will be applied
to reimburse any Arcesium Fees paid by the BNAM Funds and the HFS Arcesium Clients. In the
event that cash distributions received by BAAM from Arcesium exceed any Arcesium Fees paid
by the BNAM Funds and HFS Arcesium Clients, any excess amounts are expected to be retained
by BAAM. In the event that Arcesium is sold to a third-party, there is no guarantee that BAAM
will continue to receive such cash distributions and that the BNAM Funds and HFS Arcesium
Clients will be reimbursed for the portion of the Arcesium Fees paid by them.

Blackstone NWI Asset Management L.L.C.

ITEM 7 – TYPES OF CLIENTS

BNAM’s clients consist of the BNAM Funds. Investors in BNAM Funds are based in the U.S. and
outside of the U.S. and may consist of:
        Banks and other financial institutions
        Insurance companies
        Public and private retirement and pension plans
        Public and private profit sharing plans
        Trusts and estates
        Charitable organizations
        High net worth individuals
        State and municipal government agencies
        Sovereign wealth funds
        Corporations
        Business entities other than those listed above
        Certain members, affiliates and employees of BNAM and its affiliates
        Co-owners and their respective affiliates
        BAAM Clients and Advisory Clients

Investors are subject to applicable suitability and eligibility requirements.

Blackstone NWI Asset Management L.L.C.