Brown Advisory Investment Solutions Group LLC

ITEM 5 FEES AND COMPENSATION

Fees
BAISG or its affiliates typically receive management and/or administration fees in connection with
BAISG-sponsored funds. BAISG also receives incentive or performance fees in respect of certain
of its funds. In addition, with respect to certain funds, the applicable governing documents may
provide for fees to be paid to the firm or its affiliates in connection with the provision of certain
administrative, investment management or other services. The specific legal, organizational or
offering documents of the funds describe the basic fee structure for each fund and its investors.
Management and administration fees and carried interest incentive allocations charged by BASIG
or an affiliate in respect of a sponsored fund may be waived or may be negotiated depending on

6 / Brown Advisory Investment Solutions Group / Form ADV Part 2A Brochure

the situation, may be paid in advance or in arrears and may vary for different investors, typically
based on commitment size or the size or potential size of the overall relationship.

For services provided to certain separately managed accounts and clients, clients pay a fee to the
firm or one of its affiliates, which is in addition to any fees charged by pooled investment funds in
which such separate account makes an investment. Clients typically pay fees based on a percentage
of assets in their accounts. Fees may be negotiated depending on the particular circumstances of
the client, scope of services provided, size of account(s), service levels and other considerations.
Clients may pay more or less than similar clients.

Hedge Fund-of-Funds/Private Equity/Venture Capital
The firm typically charges the private hedge fund-of-funds or long-equity partnerships it manages
a management fee, and from time to time also may charge an incentive fee. The management fees
typically range from 0.40% to 1.25% of the net asset value of the fund per year, typically are
calculated and payable monthly in arrears and are deducted from an investor’s capital account in
the fund. Each fund’s private placement memorandum or other offering document describes its fee
structure in detail. Fund investments by clients of the firm and its affiliates and other investors also
may be subject to an account-level management fee in addition to the fees charged by the fund,
which is negotiated and which typically is based on all client assets under management or
advisement, as provided in the relevant investment management agreement between the firm and
the client or investor.

Investors in private equity funds managed by the firm or one of its affiliates typically are subject
to a management fee that is either i) a 0.40% per annum management fee or 2) a tiered management
fee structure that is based on an investor’s capital commitment. Under this tiered structure, the
management fees typically range from 0.0% per annum to 0.50% per annum. In both cases, the
applicable management fee is calculated based on one of two calculation methodologies, unless
otherwise noted in the fund’s private placement memorandum or other offering documents: 1) on
an investor’s (i) capital commitment and (ii) after the end of the investment period, switching to
the market value of the capital account; or 2) on the lesser of (i) invested capital or (ii) net assets
of the fund. Management and administration fees are typically paid by requiring investors in such
funds to make capital contributions in respect of such fees or withholding the amount of such fees
from investment proceeds that would otherwise be distributable to the investors of such advisory
client. Private equity investments by clients of the firm, including with respect to firm-sponsored
and non-firm-sponsored funds, are typically subject to an account-level management fee, which
may be waived or negotiated and which typically is based on client assets under management or
advisement.

As a general matter, investors who have entered into an investment advisory agreement with the
firm or one of its affiliates to act as an outsourced chief investment officer on behalf of such
investor (the “OCIO Relationship”) generally will not be subject to the management fee charged
by BAISG-sponsored funds. In the event that an investor’s OCIO Relationship is terminated, assets
that are invested in a BAISG-sponsored fund will become subject to the management fee (which
applicable) charged by the applicable fund.

7 / Brown Advisory Investment Solutions Group / Form ADV Part 2A Brochure

Investors in private funds managed by the firm or one of its affiliates to facilitate venture capital
and growth-stage investments typically are subject to a management fee that generally ranges from
1.5% to 2% on capital commitments and are charged a carried interest allocation that ranges from
10% to 20% with respect to such investments. Investors in private funds managed by the firm or
one of its affiliates formed to facilitate a single venture or growth capital investment typically are
subject to an annual administrative services fee as set forth in the offering documents and are
charged carried interest which can range from 0% to 20%, as negotiated by the investor. Investors
in private funds managed by the firm or one of its affiliates to facilitate private equity investments
across a range of investment types and sectors are generally charged a carried interest allocation
of 3% with respect to such investments. Investors in these particular vehicles are also subject to a
contingent management fee wherein the investor will be required to pay a management fee in the
event that the investor’s investment advisory relationship with the firm or one of its affiliates is
terminated.

Investors in private funds managed by the firm or one of its affiliates to facilitate a limited number
of direct venture capital investments may be subject to a management fee, as determined by the
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ITEM 7 TYPES OF CLIENTS

BAISG provides discretionary and non-discretionary investment advisory services to private
investment funds organized and sponsored by the firm. BAISG provides non-discretionary
investment advisory services to separate account clients. The majority of BAISG’s clients are
funds. The funds are typically organized as limited partnerships, limited liability companies, or
similar legal entities. The funds are not regulated as “investment companies” as defined under the
Investment Company Act, pursuant to exclusions under Sections 3(c)(1) or 3(c)(7) of the
Investment Company Act from the definition of “investment company.”

The firm also provides investment advice to separately managed accounts for institutions and high-
net-worth individuals. Our clients and fund investors may include high-net worth individuals,
pension funds, insurance companies, private banks, foundations, endowments, trusts, family
offices and other institutions.

14 / Brown Advisory Investment Solutions Group / Form ADV Part 2A Brochure

The minimum dollar amount of assets ordinarily required to invest in the funds varies and is set
forth in their respective governing documents. Investment minimums are subject to waiver at the
firm’s discretion. The preferred minimum dollar amount of assets ordinarily required for the
establishment of a separately managed account is $25,000,000. At BAISG’s discretion, smaller
accounts may be accepted on an accommodation basis or when BAISG believes it is likely that the
minimum dollar size will be achieved within a reasonable period of time.

Employees and clients of affiliates of BAISG are typically subject to lower minimums.