Blum Capital Partners LP

Item 5 - Fees and Compensation
A.     Adviser Fees and Compensation

Management fees for the Funds are based on the amount of capital commitment or the cost of
remaining investments (invested capital) and generally range from 1.25% to 1.5% per annum of
committed or invested capital.

The private equity Fund agreements also provide for the allocation to the Firm or one of its
affiliates of a “carried interest,” which typically equals 20% of investment profits (net
disposition proceeds and current income), after investors in the Fund have received a specified
preferred return.

Fees for co-investment vehicles are negotiated on a vehicle-by-vehicle basis, but typically
include management fees and performance fees or profit allocations similar to those paid in the
Funds.

The Firm charges a fixed annual monitoring fee to the real estate investment partnership to
which it provides property monitoring services.

The disclosure in this Item 5, together with the disclosure in Item 12, is intended to allow a plan
that is subject to the Employee Retirement Income Security Act of 1974 and that invests in a
Fund to use the “alternative reporting option” to report the Firm’s compensation as “eligible
indirect compensation” on Schedule C of the plan’s Form 5500 Annual Return/Report of
Employee Benefit Plan.

B.     Payment of Fees

Management fees payable by Funds to the Firm are generally paid quarterly in advance and are
non-refundable unless the Fund terminates its engagement of the Firm or a limited partner
withdraws from a Fund on a date other than the date prior to a management fee payment date.
A pro-rated portion of the management fees that were paid in advance for that quarter will be
refunded to each limited partner or the withdrawing limited partner, as the case may be. Profit
allocations and carried interest from Funds are assessed upon the realization of specific
investments by the Funds and overall Fund returns. Since the Funds are closed-end, investors
may not redeem interests until the end of the Fund’s life, but are entitled to distributions. The
Firm deducts its management fees and performance fees/profit allocations directly from the
Funds by instruction to the Funds’ administrator.

The monitoring fee is generally collected from the real estate investment partnership on a
quarterly basis.

Investors may be allowed, at the discretion of the General Partner, to transfer their interests in
a Fund to another investor, and in such case any fees paid in advance are allocated pro-rata to

the transferee and the transferor pursuant to the particular partnership agreement and/or the
transfer agreement.

Detailed information regarding the fees and expenses charged to the Funds is provided in the
respective limited partnership agreement of each Fund.

C.     Other Fees and Expenses

The Funds pay their own investment expenses, such as brokerage, registration and custodial
fees, commissions and related costs, interest costs, insurance costs, indemnification and
litigation costs, taxes, duties and other governmental charges, legal fees, internal and external
accounting fees, audit and tax preparation fees, and transaction and due diligence expenses
(whether or not the transaction or investment is consummated). Some expenses, such as
expenses in connection with a portfolio investment, may apply across multiple Funds. In such
case those expenses are allocated among those Funds pro rata in proportion to their respective
participation in that investment, as determined by the Firm in its sole discretion.

The Firm bears its own operating, general, administrative and overhead costs and expenses,
other than the expenses described above.

Certain affiliates of the Firm are partners in partnerships or members in limited liability
companies that invest exclusively in real property, either directly or through additional entities
that the Firm or its affiliates directly or indirectly control. Neither the Firm nor its affiliates
provide securities investment advisory services to these vehicles. However, certain employees
and affiliates of the Firm may provide administrative and monitoring services with respect to
the real property investments, for which they (but not the Firm) may receive fees and/or
preferred returns, and transactional fees in connection with the acquisition or disposition of
specific properties or investments. Please see Item 10.

D.     Additional Compensation

The Firm and its related persons may receive transaction fees or directors’ fees associated with
a portfolio investment in cases where an employee of the Firm or one of its affiliates serves on
the portfolio company’s board of directors. If such person serves on the board on behalf of the
Firm or one of its affiliates, such fees generally are credited as an offset to the management
fees that would be payable to the Firm by the applicable Funds as provided in the applicable
Fund’s governing documents.

Item 7- Types of Clients
The Firm serves as investment adviser to the Funds and certain affiliates serve as general
partner and/or managing member of the Funds.

Each Fund qualifies for an exception from the definition of “investment company” under the
Investment Company Act of 1940, as amended (the “ICA”). For Funds that fall within ICA
Section 3(c)(7), all of their investors must be “qualified purchasers” as defined in the ICA.

The Funds offer their interests to investors pursuant to Regulation D under the Securities Act of
1933, as amended (the “Securities Act”), and all investors in the Funds must be “accredited
investors” under the Securities Act.

Investors in any Fund that charges performance fees or profit allocations must be “qualified
clients” under the Advisers Act.

Each Fund has required a minimum initial investment of $10,000,000, although the Firm has
had the discretion to waive this minimum.

Investors in the Funds have included corporate and state/local pension and profit-sharing plans,
trusts, endowments, foundations, charitable organizations and estates, corporations, limited
partnerships, limited liability companies, banks and thrift institutions, and high net worth
individuals.