Cannon Hill Investment Management LLC

Item 5: Fees and Compensation

As compensation for its investment management services, we generally receive an “Asset
Management Fee” and an “Incentive Distribution” (defined below). Investors should refer to
the confidential private placement memorandum (“PPM”) and/or operating agreement
(“Operating Agreement,” together the “Governing Documents”) of each Fund for
additional or supplementary information regarding compensation paid by each Fund.

Cannon Hill’s Fund investors are qualified purchasers, as defined in Section 2(a)(51)(A) of the
Investment Company Act of 1940 (the “Investment Company Act”) and “accredited
investors” as defined in Regulation D under the Securities Act of 1933, as amended (the
“Securities Act”). Therefore, a detailed Fund fee schedule is not required to be included in
this brochure.

Asset Management Fee

In accordance with the Governing Documents, we generally receive an annual asset
management fee (the “Asset Management Fee”), which varies by Fund but is generally
equal to a specified percentage of committed capital during any commitment period and a
specified percentage of the invested capital after any commitment period. Certain Funds have
management fee offset provisions that are monitored closely by Cannon Hill’s finance team
and the CCO.

Incentive Distributions

Each General Partner is entitled to receive an incentive distribution (the “Incentive
Distribution”) which is calculated and charged based on a share of the net cash proceeds
distributed by the Fund to its investors, after reaching certain distribution hurdles as disclosed
in each Fund’s Governing Documents. The Incentive Distribution percentage will generally
increase as distribution hurdles to each Fund Account’s investors are met. If such distribution
hurdles are not met, then the Incentive Distribution will not be charged. The performance-
based Incentive Distributions described above comply with Rule 205-3 under the Advisers
Act. Incentive Distributions paid to the General Partners are separate and distinct from the
Asset Management Fees charged by Cannon Hill for investment advisory services.
Performance-based Incentive Distribution amounts, hurdles and method of calculation are
specific to each Fund as disclosed in each Fund’s Governing Documents.

Cannon Hill Investment Management, LLC                                       Form ADV Part 2A

Other Revenue

Cannon Hill (or its affiliates) receives compensation for providing property management,
construction/development/project management, leasing and other real estate related services
to certain Funds and third-parties. Such services are negotiated at arms-length market prices
as discussed further under Expenses below.

Cannon Hill has a profit-sharing agreement with a non-affiliated third-party that entitles
Cannon Hill to receive 55% of the net profits derived for cleaning and engineering services
provided to certain Fund properties as deemed appropriate. Details regarding how the Firm
addresses conflicts of interest are described in Item 11.

Expenses

The Funds generally bear all legal and other expenses incurred in the formation of the Funds
pursuant to each Fund’s Governing Documents.

The Funds indirectly bear their pro-rata share of all expenses incurred at the property level
and related to their operations, including, but not limited to, property management,
development, construction, leasing, property-level accounting services and other related
services. The Funds will also bear the costs of travel, fees and other out-of-pocket expenses
directly related to the pursuit and diligence of investment opportunities (whether or not
consummated); research and marketing; the acquisition, ownership, management, financing,
hedging or sale of its investments; taxes; fees of auditors; fees of legal counsel; expenses of
any advisory board or investment committee; property-related insurance; litigation expenses;
indemnification expenses; expenses associated with the accounting, preparation and
distribution of reports to investors; meeting of the General Partner and one or more Limited
Partners, including the reasonable travel and other out-of-pocket costs incurred by the
General Partner in attending such meetings; and any extraordinary expenses.

Although the Firm’s affiliates typically provide these services, the Funds are permitted to retain
third parties for necessary services relating to the assets held by the Funds, including any
property-level accounting, fund administration, management, development, construction,
leasing, brokerage, consulting, appraisal, artisan, repair or custodian services and other
property management services.

Cannon Hill and its affiliates provide such services on an arms-length basis on terms that are
no less favorable to the Funds and/or underlying real estate assets than those that could be
obtained from unaffiliated third parties. To confirm fees are arms-length, Cannon Hill refers
to independent publications, relies on the industry knowledge of the Firm’s professionals,
disclosures of the fees for such services provided by other service providers, and other
independent sources. Through one or more affiliated entities or related persons, Cannon Hill
may provide property management, development, construction, leasing, and property
accounting services to the Funds’ portfolio investments for a fee. The amounts of any such
fees incurred are disclosed in the respective Funds’ annual audit report. When providing
property management services to Fund real estate investments, Cannon Hill or an affiliate
receives reimbursement for the salaries of property management and property accounting
personnel employed by an affiliate, including a share of such employee’s benefits and bonus.
Cannon Hill also receives reimbursement for specific overhead expenses, including but not
limited to, IT services, accounting software, investor portal, outsourced accounting
operations, and market research subscriptions.
...

Item 7: Types of Clients

Cannon Hill serves as the investment adviser to the Funds. The Funds are privately offered,
primarily to institutional investors and high net worth individuals. Interests in the Funds are
purchased only by certain eligible investors who are “qualified purchasers” for purposes of
Section 3(c)(7) of the Investment Company Act, as amended, and “accredited investors” as
defined in Regulation D under the Securities Act.

We require Fund investors to make representations concerning their financial sophistication
and ability to bear the risk of loss of their entire investment.