Blackstone Strategic Capital Advisors LLC

Item 5 – Fees and Compensation

Management Fees

For its investment advisory services with respect to the Funds, the Registrant or an affiliated
entity generally receives a management fee at an annual rate of up to 1.50% based on capital
commitments/unfunded capital commitments and actively invested capital, as described in
further detail in the Constituent Documents. In addition, the Registrant could also charge an
annual servicing fee during certain periods (based on capital commitments and actively
invested capital) as provided in the Constituent Documents. Generally, employees, retired
partners, and certain former employees of Blackstone, as well as endowment funds,
charitable programs and/or other similar or related entities associated with the foregoing,
are not subject to such management fees or servicing fees. Fees for the Funds will vary and
are disclosed in the relevant Constituent Documents, which have been provided to
prospective investors. Fees generally are non-negotiable, except in the case of affiliates and
certain strategic/significant relationships.
As part of the Investment Program, the Registrant (and/or its affiliates) can be expected to
receive certain types of fee income in connection with the services it provides to the Funds,
including transaction fees, advisory fees, investment banking fees, break-up fees or other
similar fees. In addition, affiliates of Blackstone can be expected to receive certain types of
fees in connection with activities or services relating to the Fund Managers. Unless expressly
stated otherwise in the relevant Constituent Documents, such fees will not be shared with
investors (or be applied to reduce management fees allocated to the investors). Generally,
subject to the Constituent Documents of the relevant Fund, the management fee payable by
a Fund to the Registrant will be reduced (as disclosed in the Constituent Documents of the
relevant Fund) by all or a portion of any fees (including commitment, transaction, break-up,
organization, “topping”, advisory, directors’, monitoring, divestment or similar fees, or other
cash or non-cash consideration, in respect of a Fund’s purchase, monitoring or disposition of
an investment) received by the Registrant for transactions effected for such Fund’s account.

Other Blackstone Clients will have investment objectives that overlap with those of the
Funds in certain material respects, and the Registrant’s or its affiliates’ management thereof
will give rise to conflicts of interest relating to the Funds from time to time. For example,
differing management fees charged to the Funds on the one hand, and such Other Blackstone
Clients on the other, that invest on a side-by-side basis, will create conflicts of interest for
the Registrant and its affiliates, including with respect to the allocation of investment
opportunities.

BSCA Advisors generally does not charge a management fee on assets under management,
although it reserves the right to do so on a case-by-case basis. Please see Item 11 – Potential
Conflicts of Interest.

Timing of Fee Payments

Fees are paid to the Registrant in accordance with the Constituent Documents. In general,
management fees (and, where applicable, servicing fees) are paid on a quarterly basis in
arrears on the last business day of each calendar quarter. Investors in the Funds are
allocated and bear indirectly their pro rata share of management fees (and, where applicable,
servicing fees) at the time a capital call notice is issued with respect to the relevant period.
Investors are required to contribute capital to the Funds pursuant to a capital call notice in
respect of their allocated share of such fees on a quarterly basis, although the Funds could
instead elect to deduct such amounts from distributable cash (e.g., current income or
disposition proceeds attributable to Fund Manager Interests or other permitted
investments) otherwise payable to investors in its sole discretion.

Blackstone Strategic Relationships & Multi-Fund Arrangements

Blackstone has entered, and it can be expected that Blackstone in the future will enter, into
both (i) strategic relationships with investors (and/or one or more of their affiliates) that
involve an overall relationship with Blackstone that could (but is not required to)
incorporate one or more strategies (including, but not limited to, a different sector and/or
geographical focus within the same or a different Blackstone business unit) in addition to the
Funds’ strategies and (ii) arrangements that involve an agreement or understanding to
subscribe for a capital commitment to the Funds and one or more Other Blackstone Clients
(as defined in Item 10 below) (which could include a commitment already made to an Other
Blackstone Client) (any such overall relationship and/or multi-fund arrangement in the
foregoing (i) and (ii), a “Strategic Relationship”). A Strategic Relationship often involves
(but is not required to involve) an investor agreeing to make a capital commitment or extend
a commitment or lock-up period, as applicable, to two or more Blackstone funds or vehicles,
one of which could be a Fund and could comprise multiple lines of business or be dedicated
to a single business unit, product type or asset class, and could also or alternatively involve
the provision of services and/or financing to a Fund or its affiliates, Fund Managers and/or
portfolio companies of the Fund Managers. To the fullest extent permitted by law, investors
will not receive a copy of any agreement memorializing a Strategic Relationship program
(even if in the form of a side letter) or receive any other disclosure or reporting of the terms
of or existence of any Strategic Relationship and will be unable to elect in any “most favored
nations” election process any rights or benefits afforded through a Strategic Relationship
(and, for the avoidance of doubt, it is not expected that any further disclosure or reporting
...

Item 7 – Types of Clients

The Registrant manages the Funds. The Funds are marketed to certain institutional
investors and sophisticated, 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
   •   Family offices and fund of funds
   •   Hedge funds
   •   Private equity funds
   •   High net worth individuals (including related retirement accounts)
   •   Corporations
   •   Business entities other than those listed above
   •   Certain Blackstone employees

All potential investors admitted to the Funds are subject to certain suitability requirements
(including, in most circumstances, that each investor in the Funds be an “accredited investor”
as defined in Regulation D under the U.S. Securities Act of 1933, as amended, and a “qualified
purchaser” as defined in Section 2(a)(51) of the U.S. Investment Company Act of 1940, as
amended) and compliance procedures (including anti-money laundering procedures), prior
to acceptance of any subscription or investment amount for any Fund. In addition, any
separate maintenance or other investment-related provisions (e.g., minimum commitment
sizes) will be provided in the Constituent Documents of each Fund established by the
Registrant after the date hereof, which documents are made available to each potential
investor prior to investment.