Blackstone Senfina Advisors LLC

Item 5 – Fees and Compensation
In return for the services provided to the BSA Funds, Arcesium receives from the BSA Funds a
one-time upfront implementation fee, an annual software fee (based on the BSA Funds’ net
asset value and the net asset value of certain other Blackstone-affiliated funds), and an annual
operations services fee (also based on the BSA Funds’ net asset value and the net asset value of
certain other Blackstone-affiliated funds), as negotiated by BSA and Arcesium (such fees in the
aggregate, the “Arcesium Fees”). Because the Arcesium Fees are based, in part, on the net
asset value of the BSA Funds, which is generally determined by the administrator under the
overall supervision of BSA, there may be conflicts with respect to the calculation of the BSA
Funds’ net asset value. Additional information regarding the Arcesium Fees is available from
BSA upon request.
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, such
cash distributions are expected to be used to reimburse BAAM for the operating expenses of
Arcesium that BAAM has previously paid. Following such expected reimbursement, any further
cash distributions received by BAAM from Arcesium will be applied to reimburse the Arcesium
Fees paid by the BSA Funds and the other funds managed by the Hedge Fund Solutions Group
that are clients of Arcesium (the “HFS Arcesium Clients”). In the event that cash distributions
received by BAAM from Arcesium exceed the Arcesium Fees paid by the BSA Funds and the HFS
Arcesium Clients, any excess amounts will 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 BSA Funds and HFS Arcesium Clients will be reimbursed for any
portion of the Arcesium Fees paid by them.
BSA Revenue Share
BSA or its affiliates will provide organizational and operational support and assistance to the
BSA Portfolio Managers. In consideration for this support and assistance, BSA is entitled to
share in future asset management revenues derived by the BSA Portfolio Managers in respect
of the PM Businesses, other than in respect of revenues derived from investments by the BSA
Funds and any assets managed by any Hedge Fund Solutions Group adviser. This services
arrangement may create a conflict in the selection of investment advisers by affiliates of BSA, in
that BSA will be entitled to such share in future revenues of the PM Businesses. Please see
Item 11 – Potential Conflicts of Interest.
Other
Affiliates of BSA may provide services to a BSA Portfolio Manager. Any fees paid to such
affiliates will be negotiated on an arms-length basis and will inure solely to the benefit of such
affiliate (see Item 10 – Other Financial Industry Activities and Affiliations).

Blackstone Senfina Advisors L.L.C.

ITEM 7 – TYPES OF CLIENTS

BSA’s clients primarily consist of the BSA Funds. BSA also serves as a discretionary sub-advisor
for certain funds/accounts managed by affiliates of BSA/Blackstone. Investors are based in the
U.S. and outside of the U.S. and may consist of:
        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
        High Net Worth Individuals
        Corporations
        Business Entities Other than those Listed above
        Certain Blackstone Employees
        BAAM Clients and other BSA Affiliates
All Investors are subject to applicable suitability and eligibility requirements.

Blackstone Senfina Advisors L.L.C.